HB 1405

1	A bill to be entitled
2	An act relating to retirement; amending ss. 110.123,
3	112.0801, and 112.65, F.S.; conforming provisions to
4	changes made by the act; amending s. 112.363, F.S.;
5	revising provisions relating to retiree health insurance
6	subsidies; revising provisions relating to payments of
7	subsidies; providing that no additional service credit for
8	the health insurance subsidy can be earned after July 1,
9	2011; amending s. 121.021, F.S.; revising definitions;
10	amending s. 121.051, F.S.; requiring that a local
11	governmental entity or the governing body of a charter
12	school or charter technical career center make certain
13	elections regarding benefits at the time the entity or
14	governing body joins the Florida Retirement System;
15	providing that employer-paid employee contributions are
16	subject to certain taxes; amending s. 121.0515, F.S.;
17	redefining membership in the Special Risk Class;
18	redefining criteria for Special Risk Class membership;
19	providing procedures for designation and removal of
20	designation of Special Risk Class members; providing for
21	employee contributions to be used, if applicable, when
22	purchasing credit for past service; amending s. 121.052,
23	F.S., relating to the membership class of elected
24	officers; conforming provisions to changes made by the
25	act; requiring member contributions; providing for a
26	refund of contributions under certain circumstances for an
27	officer who leaves office; providing that a member who
28	obtains a refund of contributions waives certain rights
29	under the Florida Retirement System; reducing the accrual
30	value to 1.60 percent for each year of service earned
31	after July 1, 2011; amending s. 121.053, F.S.; clarifying
32	the employer contributions required for Elected Officers'
33	Class members who participate in the Deferred Retirement
34	Option Program; amending s. 121.055, F.S., relating to the
35	Senior Management Service Class; conforming provisions to
36	changes made by the act; requiring employee contributions;
37	providing for a refund of contributions under certain
38	circumstances for a member who terminates employment;
39	providing that a member who obtains a refund of
40	contributions waives certain rights under the Florida
41	Retirement System; reducing the accrual value to 1.60
42	percent for each year of service earned after July 1,
43	2011; limiting the payment of benefits prior to a
44	participant's termination of employment; amending s.
45	121.071, F.S.; requiring employee and employer
46	contributions to the retirement system effective July 1,
47	2011; providing for a refund of contributions under
48	certain circumstances following termination of employment;
49	prohibiting such refund if an approved qualified domestic
50	relations order is filed against the participant's
51	retirement account; requiring repayment plus interest of
52	an invalid refund; amending s. 121.081, F.S.; providing
53	and revising requirements for contributions for prior
54	service performed on or after July 1, 2011; amending s.
55	121.091, F.S.; setting the annual service accrual rates
56	for the classes for service earned after July 1, 2011;
57	reducing the minimum disability retirement benefit for
58	certain judges to one-third of the monthly compensation at
59	the time of disability; providing for the refund of
60	accumulated contributions if a member's employment is
61	terminated for any reason other than retirement; closing
62	the Deferred Retirement Option Program to new participants
63	on July 1, 2011; amending s. 121.101, F.S.; providing a
64	calculation for cost-of-living adjustments for service
65	earned after July 1, 2011; amending s. 121.121, F.S.,
66	relating to the purchase of creditable service following
67	an authorized leave of absence; requiring that service
68	credit be purchased at the employee and employer
69	contribution rates in effect during the leave of absence
70	effective a certain date; amending s. 121.125, F.S.;
71	requiring that certain employers make the required
72	employee and employer retirement contributions following
73	an employee's workers' compensation injury or illness;
74	requiring that a penalty be assessed against certain
75	employers that fail to pay the required contributions;
76	reenacting s. 121.161, F.S., relating to the references of
77	other laws as amended; amending s. 121.35, F.S., relating
78	to the optional retirement program for the State
79	University System; limiting the payment of benefits prior
80	to a participant's termination of employment; amending s.
81	121.4501, F.S.; changing the name of the Public Employee
82	Optional Retirement Program to the Florida Retirement
83	System Investment Plan; requiring members of the Florida
84	Retirement System Investment Plan to make certain
85	contributions to the Florida Retirement System Investment
86	Plan Trust Fund based on the employee's membership class;
87	revising and providing definitions; providing for
88	contribution adjustments as a result of employer errors or
89	corrections; requiring an employer to receive a credit for
90	excess contributions and to reimburse an employee for
91	excess contributions, subject to certain limitations;
92	providing for a pension plan participant to retain his or
93	her prior plan choice following a return to employment;
94	limiting certain refunds of contributions which exceed the
95	amount that would have accrued had the member remained in
96	the defined benefit program; providing certain
97	requirements and limitations with respect to
98	contributions; clarifying that participant and employer
99	contributions are earmarked for specified purposes;
100	providing duties of the third-party administrator;
101	providing that a member is fully and immediately vested
102	with respect to employee contributions paid by the member;
103	providing for the forfeiture of nonvested employer
104	contributions and service credit under certain
105	circumstances; amending s. 121.4502, F.S.; changing the
106	name of the Public Employee Optional Retirement Program
107	Trust Fund to the Florida Retirement System Investment
108	Plan Trust Fund; amending s. 121.4503, F.S.; providing for
109	the deposit of participant contributions into the Florida
110	Retirement System Contributions Clearing Trust Fund;
111	amending s. 121.571, F.S.; providing requirements for
112	submitting employee contributions; amending s. 121.591,
113	F.S.; limiting the payment of benefits prior to a
114	participant's termination of employment; providing for the
115	forfeiture of nonvested accumulations and service credits
116	upon payment of certain vested benefits; providing that
117	the distribution payment method selected by the
118	participant or beneficiary is final and irrevocable at the
119	time of benefit distribution; prohibiting a distribution
120	of employee contributions if a qualified domestic
121	relations order is filed against the participant's
122	account; amending s. 121.5911, F.S.; conforming provisions
123	to changes made by the act; amending s. 121.70, F.S.;
124	revising legislative intent; amending s. 121.71, F.S.;
125	requiring that employee contributions be deducted from the
126	employee's monthly salary, beginning on a specified date,
127	and treated as employer contributions under certain
128	provisions of federal law; clarifying that an employee may
129	not receive such contributions directly; specifying the
130	required employee retirement contribution rates for the
131	membership of each membership class and subclass of the
132	Florida Retirement System; specifying the required
133	employer retirement contribution rates for each membership
134	class and subclass of the Florida Retirement System in
135	order to address unfunded actuarial liabilities of the
136	system; requiring an assessment to be imposed if the
137	employee contributions remitted are less than the amount
138	required under certain circumstances; providing for the
139	employer to receive a credit for excess contributions
140	remitted and to apply such credit against future
141	contributions owed; amending s. 121.72, F.S.; revising
142	certain requirements governing allocations to optional
143	retirement program participant accounts; setting the
144	allocation into retirement accounts at 11.25 percent for
145	Special Risk Class members and 9 percent for all other
146	members; amending s. 121.73, F.S., relating to disability
147	coverage for participants in the optional retirement
148	program; amending ss. 121.74, 121.75 and 121.77, F.S.;
149	conforming provisions to changes made by the act; amending
150	s. 121.78, F.S.; revising certain requirements for
151	administering the payment and distribution of
152	contributions; requiring that certain fees be imposed for
153	delinquent payments; providing that an employer is
154	responsible for recovering any refund provided to an
155	employee in error; revising the terms of an authorized
156	waiver of delinquency; requiring an employer to receive a
157	credit for excess contributions and to reimburse an
158	employee for excess contributions, subject to certain
159	limitations; requiring the State Board of Administration
160	and the Department of Management Services to request a
161	determination letter and private letter ruling from the
162	United States Internal Revenue Service; providing for
163	severability; providing legislative findings; providing
164	that the act fulfills an important state interest;
165	providing appropriations to and authorizing additional
166	positions for the Division of Retirement within the
167	Department of Management Services; providing effective
168	dates.
169
170	Be It Enacted by the Legislature of the State of Florida:
171
172	Section 1.  Paragraph (g) of subsection (2) of section
173	110.123, Florida Statutes, is amended to read:
174	110.123  State group insurance program.-
175	(2)  DEFINITIONS.-As used in this section, the term:
176	(g)  "Retired state officer or employee" or "retiree" means
177	any state or state university officer or employee who retires
178	under a state retirement system or a state optional annuity or
179	retirement program or is placed on disability retirement, and
180	who was insured under the state group insurance program at the
181	time of retirement, and who begins receiving retirement benefits
182	immediately after retirement from state or state university
183	office or employment. The term also includes In addition to
184	these requirements, any state officer or state employee who
185	retires under the Florida Retirement System Investment Plan
186	Public Employee Optional Retirement Program established under
187	part II of chapter 121 shall be considered a "retired state
188	officer or employee" or "retiree" as used in this section if he
189	or she:
190	1.  Meets the age and service requirements to qualify for
191	normal retirement as set forth in s. 121.021(29); or
192	2.  Has attained the age specified by s. 72(t)(2)(A)(i) of
193	the Internal Revenue Code and has 6 years of creditable service.
194	Section 2.  Section 112.0801, Florida Statutes, is amended
195	to read:
196	112.0801  Group insurance; participation by retired
197	employees.-
198	(1)  Any state agency, county, municipality, special
199	district, community college, or district school board that which
200	provides life, health, accident, hospitalization, or annuity
201	insurance, or all of any kinds of such insurance, for its
202	officers and employees and their dependents upon a group
203	insurance plan or self-insurance plan shall allow all former
204	personnel who have retired prior to October 1, 1987, as well as
205	those who retire on or after such date, and their eligible
206	dependents, the option of continuing to participate in the such
207	group insurance plan or self-insurance plan. Retirees and their
208	eligible dependents shall be offered the same health and
209	hospitalization insurance coverage as is offered to active
210	employees at a premium cost of no more than the premium cost
211	applicable to active employees. For the retired employees and
212	their eligible dependents, the cost of any such continued
213	participation in any type of plan or any of the cost thereof may
214	be paid by the employer or by the retired employees. To
215	determine health and hospitalization plan costs, the employer
216	shall commingle the claims experience of the retiree group with
217	the claims experience of the active employees; and, for other
218	types of coverage, the employer may commingle the claims
219	experience of the retiree group with the claims experience of
220	active employees. Retirees covered under Medicare may be
221	experience-rated separately from the retirees not covered by
222	Medicare and from active employees if, provided that the total
223	premium does not exceed that of the active group and coverage is
224	basically the same as for the active group.
225	(2)  For purposes of this section, the term "retiree" has
226	the same meaning as in s. 110.123(2). means any officer or
227	employee who retires under a state retirement system or a state
228	optional annuity or retirement program or is placed on
229	disability retirement and who begins receiving retirement
230	benefits immediately after retirement from employment. In
231	addition to these requirements, any officer or employee who
232	retires under the Public Employee Optional Retirement Program
233	established under part II of chapter 121 shall be considered a
234	"retired officer or employee" or "retiree" as used in this
235	section if he or she:
236	(a)  Meets the age and service requirements to qualify for
237	normal retirement as set forth in s. 121.021(29); or
238	(b)  Has attained the age specified by s. 72(t)(2)(A)(i) of
239	the Internal Revenue Code and has 6 years of creditable service.
240	Section 3.  Paragraphs (b) and (e) of subsection (2) and
241	paragraph (e) of subsection (3) of section 112.363, Florida
242	Statutes, are amended, and paragraphs (f) and (g) are added to
243	subsection (3) of that section, to read:
244	112.363  Retiree health insurance subsidy.-
245	(2)  ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.-
246	(b)  For purposes of this section, a person is deemed
247	retired from a state-administered retirement system when he or
248	she terminates employment with all employers participating in
249	the Florida Retirement System as described in s. 121.021(39)
250	and:
251	1.  For a member participant of the investment plan Public
252	Employee Optional Retirement Program established under part II
253	of chapter 121, the participant meets the age or service
254	requirements to qualify for normal retirement as set forth in s.
255	121.021(29) and meets the definition of retiree in s.
256	121.4501(2).
257	2.  For a member of the Florida Retirement System Pension
258	Plan defined benefit program, or any employee who maintains
259	creditable service under both the pension plan defined benefit
260	program and the investment plan Public Employee Optional
261	Retirement Program, the member begins drawing retirement
262	benefits from the pension plan defined benefit program of the
263	Florida Retirement System.
264	(e)  Participants in the Senior Management Service Optional
265	Annuity Program as provided in s. 121.055(6) and the State
266	University System Optional Retirement Program as provided in s.
267	121.35 shall not receive the retiree health insurance subsidy
268	provided in this section. Prior to July 1, 2011, the employer of
269	such participant shall pay the contributions required in
270	subsection (8) to the annuity program provided in s.
271	121.055(6)(d) or s. 121.35(4)(a), as applicable. Effective July
272	1, 2011, employer contributions required in subsection (8) may
273	not be paid to the optional retirement programs provided in ss.
274	121.35 and 1012.875 or the optional annuity program provided in
275	s. 121.055(6).
276	(3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.-
277	(e)1.  Beginning July 1, 2001, each eligible retiree of the
278	pension plan defined benefit program of the Florida Retirement
279	System, or, if the retiree is deceased, his or her beneficiary
280	who is receiving a monthly benefit from such retiree's account
281	and who is a spouse, or a person who meets the definition of
282	joint annuitant in s. 121.021(28), shall receive a monthly
283	retiree health insurance subsidy payment equal to the number of
284	years of creditable service, as defined in s. 121.021(17),
285	completed at the time of retirement multiplied by $5; however,
286	no eligible retiree or beneficiary may receive a subsidy payment
287	of more than $150 or less than $30. If there are multiple
288	beneficiaries, the total payment may must not be greater than
289	the payment to which the retiree was entitled. The health
290	insurance subsidy amount payable to any person receiving the
291	retiree health insurance subsidy payment on July 1, 2001, may
292	shall not be reduced solely by operation of this subparagraph.
293	2.  Beginning July 1, 2002, each eligible participant of
294	the investment plan Public Employee Optional Retirement Program
295	of the Florida Retirement System who has met the requirements of
296	this section, or, if the participant is deceased, his or her
297	spouse who is the participant's designated beneficiary, shall
298	receive a monthly retiree health insurance subsidy payment equal
299	to the number of years of creditable service, as provided in
300	this subparagraph, completed at the time of retirement,
301	multiplied by $5; however, an no eligible retiree or beneficiary
302	may not receive a subsidy payment of more than $150 or less than
303	$30. For purposes of determining a participant's creditable
304	service used to calculate the health insurance subsidy, a
305	participant's years of service credit or fraction thereof shall
306	be based on the participant's work year as defined in s.
307	121.021(54). Credit must shall be awarded for a full work year
308	if whenever health insurance subsidy contributions have been
309	made as required by law for each month in the participant's work
310	year. In addition, all years of creditable service retained
311	under the Florida Retirement System Pension Plan must defined
312	benefit program shall be included as creditable service for
313	purposes of this section. Notwithstanding any other provision in
314	this section to the contrary, the spouse at the time of death is
315	shall be the participant's beneficiary unless such participant
316	has designated a different beneficiary subsequent to the
317	participant's most recent marriage.
318	(f)1.  Beginning July 1, 2011, each eligible retiree of the
319	pension plan of the Florida Retirement System, or, if the
320	retiree is deceased, his or her beneficiary who is receiving a
321	monthly benefit from such retiree's account and who is a spouse,
322	or a person who meets the definition of joint annuitant in s.
323	121.021(28), shall receive a monthly retiree health insurance
324	subsidy payment equal to the number of years of creditable
325	service, as defined in s. 121.021(17), completed at the time of
326	retirement but prior to July 1, 2011, multiplied by $5. However,
327	an eligible retiree or beneficiary may not receive a subsidy
328	payment of more than $150 or less than $5. If there are multiple
329	beneficiaries, the total payment may not be greater than the
330	payment to which the retiree was entitled. The health insurance
331	subsidy amount payable to any person receiving the retiree
332	health insurance subsidy payment on July 1, 2011, may not be
333	reduced solely by operation of this subparagraph.
334	2.  Beginning July 1, 2011, each eligible participant of
335	the investment plan of the Florida Retirement System who has met
336	the requirements of this section, or, if the participant is
337	deceased, his or her spouse who is the participant's designated
338	beneficiary, shall receive a monthly retiree health insurance
339	subsidy payment equal to the number of years of creditable
340	service, as provided in this subparagraph, completed at the time
341	of retirement, multiplied by $5. However, an eligible retiree or
342	beneficiary may not receive a subsidy payment of more than $150
343	or less than $5. For purposes of determining a participant's
344	creditable service used to calculate the health insurance
345	subsidy, a participant's years of service credit or fraction
346	thereof shall be based on the participant's work year as defined
347	in s. 121.021(54). Credit shall be awarded for a full work year
348	whenever health insurance subsidy contributions have been made
349	for each month in the participant's work year. In addition, all
350	years of creditable service retained under the Florida
351	Retirement System pension plan must be included as creditable
352	service for purposes of this section. Notwithstanding any other
353	provision in this section, the spouse at the time of death is
354	the participant's beneficiary unless such participant has
355	designated a different beneficiary subsequent to the
356	participant's most recent marriage.
357	3.  A retiree or beneficiary is not eligible to receive the
358	subsidy unless the retiree earned 6 years of creditable service
359	in the Florida Retirement System. Service in the optional
360	retirement programs administered under ss. 121.35 and 1012.875
361	and the optional annuity program administered under s.
362	121.055(6) may not be used to meet this service requirement.
363	(g)  Service credit earned on or after July 1, 2011, may
364	not be used toward the calculation of the amount of the retiree
365	health insurance subsidy.
366	Section 4.  Subsection (1) of section 112.65, Florida
367	Statutes, is amended to read:
368	112.65  Limitation of benefits.-
369	(1)  ESTABLISHMENT OF PROGRAM.-The normal retirement
370	benefit or pension payable to a retiree who becomes a member of
371	any retirement system or plan and who has not previously
372	participated in such plan, on or after January 1, 1980, may
373	shall not exceed 100 percent of his or her average final
374	compensation. However, nothing contained in this section does
375	not shall apply to supplemental retirement benefits or to
376	pension increases attributable to cost-of-living increases or
377	adjustments. For the purposes of this section, benefits accruing
378	in individual member participant accounts established under the
379	investment plan Public Employee Optional Retirement Program
380	established in part II of chapter 121 are considered
381	supplemental benefits. As used in this section, the term
382	"average final compensation" means the average of the member's
383	earnings over a period of time which the governmental entity has
384	established by statute, charter, or ordinance.
385	Section 5.  Subsections (3) and (15), paragraph (a) of
386	subsection (19), paragraph (b) of subsection (22), and
387	subsections (38), (39), (55), and (59) of section 121.021,
388	Florida Statutes, are amended to read:
389	121.021  Definitions.-The following words and phrases as
390	used in this chapter have the respective meanings set forth
391	unless a different meaning is plainly required by the context:
392	(3)  "System" means the general retirement system
393	established by this chapter to be known and cited as the
394	"Florida Retirement System," including, but not limited to, the
395	defined benefit retirement program administered under the
396	provisions of part I of this part, referred to as the "Florida
397	Retirement System Pension Plan" or "pension plan" chapter and
398	the defined contribution retirement program known as the Public
399	Employee Optional Retirement Program and administered under the
400	provisions of part II of this chapter, referred to as the
401	"Florida Retirement System Investment Plan" or "investment
402	plan".
403	(15)  "Special risk member" or "Special Risk Class member"
404	means a member of the Florida Retirement System who meets the
405	eligibility and criteria in s. 121.0515 to participate in the
406	Special Risk Class.
407	(a)  Until October 1, 1978, "special risk member" means any
408	officer or employee whose application is approved by the
409	administrator and who receives salary payments for work
410	performed as a peace officer; law enforcement officer; police
411	officer; highway patrol officer; custodial employee at a
412	correctional or detention facility; correctional agency employee
413	whose duties and responsibilities involve direct contact with
414	inmates, but excluding secretarial and clerical employees;
415	firefighter; or an employee in any other job in the field of law
416	enforcement or fire protection if the duties of such person are
417	certified as hazardous by his or her employer.
418	(b)  Effective October 1, 1978, "special risk member" means
419	a member of the Florida Retirement System who is designated as a
420	special risk member by the division in accordance with s.
421	121.0515. Such member must be employed as a law enforcement
422	officer, a firefighter, or a correctional officer and must meet
423	certain other special criteria as set forth in s. 121.0515.
424	(c)  Effective October 1, 1999, "special risk member" means
425	a member of the Florida Retirement System who is designated as a
426	special risk member by the division in accordance with s.
427	121.0515. Such member must be employed as a law enforcement
428	officer, a firefighter, a correctional officer, an emergency
429	medical technician, or a paramedic and must meet certain other
430	special criteria as set forth in s. 121.0515.
431	(d)1.  Effective January 1, 2001, "special risk member"
432	includes any member who is employed as a community-based
433	correctional probation officer and meets the special criteria
434	set forth in s. 121.0515(2)(e).
435	2.  Effective January 1, 2001, "special risk member"
436	includes any professional health care bargaining unit or non-
437	unit member who is employed by the Department of Corrections or
438	the Department of Children and Family Services and meets the
439	special criteria set forth in s. 121.0515(2)(f).
440	(e)  Effective July 1, 2001, the term "special risk member"
441	includes any member who is employed as a youth custody officer
442	by the Department of Juvenile Justice and meets the special
443	criteria set forth in s. 121.0515(2)(g).
444	(f)  Effective August 1, 2008, "special risk member"
445	includes any member who meets the special criteria for continued
446	membership set forth in s. 121.0515(2)(k).
447	(19)  "Prior service" under part I of this chapter means:
448	(a)  Service for which the member had credit under one of
449	the existing systems and received a refund of his or her
450	contributions upon termination of employment. Prior service
451	shall also includes include that service between December 1,
452	1970, and the date the system becomes noncontributory for which
453	the member had credit under the Florida Retirement System and
454	received a refund of his or her contributions upon termination
455	of employment.
456	(22)  "Compensation" means the monthly salary paid a member
457	by his or her employer for work performed arising from that
458	employment.
459	(b)  Under no circumstances shall Compensation for a member
460	participating in the pension plan defined benefit retirement
461	program or the investment plan Public Employee Optional
462	Retirement Program of the Florida Retirement System may not
463	include:
464	1.  Fees paid professional persons for special or
465	particular services or include salary payments made from a
466	faculty practice plan authorized by the Board of Governors of
467	the State University System for eligible clinical faculty at a
468	college in a state university that has a faculty practice plan;
469	or
470	2.  Any bonuses or other payments prohibited from inclusion
471	in the member's average final compensation and defined in
472	subsection (47).
473	(38)  "Continuous service" means creditable service as a
474	member, beginning with the first day of employment with an
475	employer covered under a state-administered retirement system
476	consolidated herein and continuing for as long as the member
477	remains in an employer-employee relationship with an employer
478	covered under this chapter. An absence of 1 calendar month or
479	more from an employer's payroll shall be considered a break in
480	continuous service, except for periods of absence during which
481	an employer-employee relationship continues to exist and such
482	period of absence is creditable under this chapter or under one
483	of the existing systems consolidated herein. However, a law
484	enforcement officer as defined in s. 121.0515(3)(2)(a) who was a
485	member of a state-administered retirement system under chapter
486	122 or chapter 321 and who resigned and was subsequently
487	reemployed in a law enforcement position within 12 calendar
488	months of such resignation by an employer under such state-
489	administered retirement system shall be deemed to have not
490	experienced a break in service. Further, with respect to a
491	state-employed law enforcement officer who meets the criteria
492	specified in s. 121.0515(3)(2)(a), if the absence from the
493	employer's payroll is the result of a "layoff" as defined in s.
494	110.107 or a resignation to run for an elected office that meets
495	the criteria specified in s. 121.0515(3)(2)(a), no break in
496	continuous service shall be deemed to have occurred if the
497	member is reemployed as a state law enforcement officer or is
498	elected to an office which meets the criteria specified in s.
499	121.0515(3)(2)(a) within 12 calendar months after the date of
500	the layoff or resignation, notwithstanding the fact that such
501	period of layoff or resignation is not creditable service under
502	this chapter. A withdrawal of contributions will constitute a
503	break in service. Continuous service also includes past service
504	purchased under this chapter, provided such service is
505	continuous within this definition and the rules established by
506	the administrator. The administrator may establish
507	administrative rules and procedures for applying this definition
508	to creditable service authorized under this chapter. Any
509	correctional officer, as defined in s. 943.10, whose
510	participation in the state-administered retirement system is
511	terminated due to the transfer of a county detention facility
512	through a contractual agreement with a private entity pursuant
513	to s. 951.062, shall be deemed an employee with continuous
514	service in the Special Risk Class, provided return to employment
515	with the former employer takes place within 3 years due to
516	contract termination or the officer is employed by a covered
517	employer in a special risk position within 1 year after his or
518	her initial termination of employment by such transfer of its
519	detention facilities to the private entity.
520	(39)(a)  "Termination" occurs, except as provided in
521	paragraph (b), when a member ceases all employment relationships
522	with participating employers an employer, however:
523	1.  For retirements effective before July 1, 2010, if a
524	member is employed by any such employer within the next calendar
525	month, termination shall be deemed not to have occurred. A leave
526	of absence constitutes a continuation of the employment
527	relationship, except that a leave of absence without pay due to
528	disability may constitute termination if such member makes
529	application for and is approved for disability retirement in
530	accordance with s. 121.091(4). The department or state board may
531	require other evidence of termination as it deems necessary.
532	2.  For retirements effective on or after July 1, 2010, if
533	a member is employed by any such employer within the next 6
534	calendar months, termination shall be deemed not to have
535	occurred. A leave of absence constitutes a continuation of the
536	employment relationship, except that a leave of absence without
537	pay due to disability may constitute termination if such member
538	makes application for and is approved for disability retirement
539	in accordance with s. 121.091(4). The department or state board
540	may require other evidence of termination as it deems necessary.
541	(b)  "Termination" for a member electing to participate in
542	the Deferred Retirement Option Program occurs when the program
543	participant ceases all employment relationships with
544	participating employers an employer in accordance with s.
545	121.091(13), however:
546	1.  For termination dates occurring before July 1, 2010, if
547	the participant is employed by any such employer within the next
548	calendar month, termination will be deemed not to have occurred,
549	except as provided in s. 121.091(13)(b)4.c. A leave of absence
550	shall constitute a continuation of the employment relationship.
551	2.  For termination dates occurring on or after July 1,
552	2010, if the participant becomes employed by any such employer
553	within the next 6 calendar months, termination will be deemed
554	not to have occurred, except as provided in s.
555	121.091(13)(b)4.c. A leave of absence constitutes a continuation
556	of the employment relationship.
557	(c)  Effective July 1, 2011, "termination" for a member
558	receiving a refund of employee contributions occurs when a
559	member ceases all employment relationships with participating
560	employers for 3 calendar months. A leave of absence for less
561	than 3 calendar months constitutes a continuation of the
562	employment relationship.
563	(55)  "Benefit" means any pension payment, lump-sum or
564	periodic, to a member, retiree, or beneficiary, based partially
565	or entirely on employer contributions or employee contributions,
566	if applicable.
567	(59)  "Payee" means a retiree or beneficiary of a retiree
568	who has received or is receiving a retirement benefit payment.
569	Section 6.  Paragraphs (b) and (c) of subsection (2) and
570	subsection (3) of section 121.051, Florida Statutes, are amended
571	to read:
572	121.051  Participation in the system.-
573	(2)  OPTIONAL PARTICIPATION.-
574	(b)1.  The governing body of any municipality, metropolitan
575	planning organization, or special district in the state may
576	elect to participate in the system upon proper application to
577	the administrator and may cover all or any of its units as
578	approved by the Secretary of Health and Human Services and the
579	administrator. The department shall adopt rules establishing
580	procedures provisions for the submission of documents necessary
581	for such application. Prior to being approved for participation
582	in the Florida Retirement System, the governing body of a any
583	such municipality, metropolitan planning organization, or
584	special district that has a local retirement system must shall
585	submit to the administrator a certified financial statement
586	showing the condition of the local retirement system as of a
587	date within 3 months prior to the proposed effective date of
588	membership in the Florida Retirement System. The statement must
589	be certified by a recognized accounting firm that is independent
590	of the local retirement system. All required documents necessary
591	for extending Florida Retirement System coverage must be
592	received by the department for consideration at least 15 days
593	prior to the proposed effective date of coverage. If the
594	municipality, metropolitan planning organization, or special
595	district does not comply with this requirement, the department
596	may require that the effective date of coverage be changed.
597	2.  Any city, metropolitan planning organization, or
598	special district that has an existing retirement system covering
599	the employees in the units that are to be brought under the
600	Florida Retirement System may participate only after holding a
601	referendum in which all employees in the affected units have the
602	right to participate. Only those employees electing coverage
603	under the Florida Retirement System by affirmative vote in said
604	referendum shall be eligible for coverage under this chapter,
605	and those not participating or electing not to be covered by the
606	Florida Retirement System shall remain in their present systems
607	and shall not be eligible for coverage under this chapter. After
608	the referendum is held, all future employees shall be compulsory
609	members of the Florida Retirement System.
610	3.  At the time of joining the Florida Retirement System,
611	the governing body of any city, metropolitan planning
612	organization, or special district complying with subparagraph 1.
613	may elect to provide, or not provide, benefits based on past
614	service of officers and employees as described in s. 121.081(1).
615	However, if such employer elects to provide past service
616	benefits, such benefits must be provided for all officers and
617	employees of its covered group.
618	4.  Once this election is made and approved it may not be
619	revoked, except pursuant to subparagraphs 5. and 6., and all
620	present officers and employees electing coverage under this
621	chapter and all future officers and employees shall be
622	compulsory members of the Florida Retirement System.
623	5.  Subject to the conditions set forth in subparagraph 6.,
624	the governing body of a any hospital licensed under chapter 395
625	which is governed by the board of a special district as defined
626	in s. 189.403(1) or by the board of trustees of a public health
627	trust created under s. 154.07, hereinafter referred to as
628	"hospital district," and which participates in the system, may
629	elect to cease participation in the system with regard to future
630	employees in accordance with the following procedure:
631	a.  No more than 30 days and at least 7 days before
632	adopting a resolution to partially withdraw from the Florida
633	Retirement System and establish an alternative retirement plan
634	for future employees, a public hearing must be held on the
635	proposed withdrawal and proposed alternative plan.
636	b.  From 7 to 15 days before such hearing, notice of intent
637	to withdraw, specifying the time and place of the hearing, must
638	be provided in writing to employees of the hospital district
639	proposing partial withdrawal and must be published in a
640	newspaper of general circulation in the area affected, as
641	provided by ss. 50.011-50.031. Proof of publication of such
642	notice shall be submitted to the Department of Management
643	Services.
644	c.  The governing body of a any hospital district seeking
645	to partially withdraw from the system must, before such hearing,
646	have an actuarial report prepared and certified by an enrolled
647	actuary, as defined in s. 112.625(3), illustrating the cost to
648	the hospital district of providing, through the retirement plan
649	that the hospital district is to adopt, benefits for new
650	employees comparable to those provided under the Florida
651	Retirement System.
652	d.  Upon meeting all applicable requirements of this
653	subparagraph, and subject to the conditions set forth in
654	subparagraph 6., partial withdrawal from the system and adoption
655	of the alternative retirement plan may be accomplished by
656	resolution duly adopted by the hospital district board. The
657	hospital district board must provide written notice of such
658	withdrawal to the division by mailing a copy of the resolution
659	to the division, postmarked by no later than December 15, 1995.
660	The withdrawal shall take effect January 1, 1996.
661	6.  Following the adoption of a resolution under sub-
662	subparagraph 5.d., all employees of the withdrawing hospital
663	district who were participants in the Florida Retirement System
664	before prior to January 1, 1996, shall remain as participants in
665	the system for as long as they are employees of the hospital
666	district, and all rights, duties, and obligations between the
667	hospital district, the system, and the employees shall remain in
668	full force and effect. Any employee who is hired or appointed on
669	or after January 1, 1996, may not participate in the Florida
670	Retirement System, and the withdrawing hospital district shall
671	have no obligation to the system with respect to such employees.
672	(c)  Employees of public community colleges or charter
673	technical career centers sponsored by public community colleges,
674	designated in s. 1000.21(3), who are members of the Regular
675	Class of the Florida Retirement System and who comply with the
676	criteria set forth in this paragraph and s. 1012.875 may, in
677	lieu of participating in the Florida Retirement System, elect to
678	withdraw from the system altogether and participate in the State
679	Community College System Optional Retirement Program provided by
680	the employing agency under s. 1012.875.
681	1.  Through June 30, 2001, the cost to the employer for
682	benefits under the optional retirement program such annuity
683	equals the normal cost portion of the employer retirement
684	contribution which would be required if the employee were a
685	member of the pension plan's Regular Class defined benefit
686	program, plus the portion of the contribution rate required by
687	s. 112.363(8) which would otherwise be assigned to the Retiree
688	Health Insurance Subsidy Trust Fund. Effective July 1, 2001,
689	each employer shall contribute on behalf of each participant in
690	the optional program an amount equal to 10.43 percent of the
691	participant's gross monthly compensation. The employer shall
692	deduct an amount for the administration of the program. The
693	employer shall contribute an additional amount to the Florida
694	Retirement System Trust Fund equal to the unfunded actuarial
695	accrued liability portion of the Regular Class contribution
696	rate.
697	2.  The decision to participate in the an optional
698	retirement program is irrevocable as long as the employee holds
699	a position eligible for participation, except as provided in
700	subparagraph 3. Any service creditable under the Florida
701	Retirement System is retained after the member withdraws from
702	the system; however, additional service credit in the system may
703	not be earned while a member of the optional retirement program.
704	3.  An employee who has elected to participate in the
705	optional retirement program shall have one opportunity, at the
706	employee's discretion, to transfer from the optional retirement
707	program to the pension plan defined benefit program of the
708	Florida Retirement System or to the investment plan established
709	under part II of this chapter Public Employee Optional
710	Retirement Program, subject to the terms of the applicable
711	optional retirement program contracts.
712	a.  If the employee chooses to move to the investment plan
713	Public Employee Optional Retirement Program, any contributions,
714	interest, and earnings creditable to the employee under the
715	State Community College System optional retirement program are
716	retained by the employee in the State Community College System
717	optional retirement program, and the applicable provisions of s.
718	121.4501(4) govern the election.
719	b.  If the employee chooses to move to the pension plan
720	defined benefit program of the Florida Retirement System, the
721	employee shall receive service credit equal to his or her years
722	of service under the State Community College System optional
723	retirement program.
724	(I)  The cost for such credit is the amount representing
725	the present value of the employee's accumulated benefit
726	obligation for the affected period of service. The cost shall be
727	calculated as if the benefit commencement occurs on the first
728	date the employee becomes eligible for unreduced benefits, using
729	the discount rate and other relevant actuarial assumptions that
730	were used to value the Florida Retirement System pension defined
731	benefit plan liabilities in the most recent actuarial valuation.
732	The calculation must include any service already maintained
733	under the pension defined benefit plan in addition to the years
734	under the State Community College System optional retirement
735	program. The present value of any service already maintained
736	must be applied as a credit to total cost resulting from the
737	calculation. The division shall ensure that the transfer sum is
738	prepared using a formula and methodology certified by an
739	enrolled actuary.
740	(II)  The employee must transfer from his or her State
741	Community College System optional retirement program account and
742	from other employee moneys as necessary, a sum representing the
743	present value of the employee's accumulated benefit obligation
744	immediately following the time of such movement, determined
745	assuming that attained service equals the sum of service in the
746	pension plan defined benefit program and service in the State
747	Community College System optional retirement program.
748	4.  Participation in the optional retirement program is
749	limited to employees who satisfy the following eligibility
750	criteria:
751	a.  The employee is must be otherwise eligible for
752	membership or renewed membership in the Regular Class of the
753	Florida Retirement System, as provided in s. 121.021(11) and
754	(12) or s. 121.122.
755	b.  The employee is must be employed in a full-time
756	position classified in the Accounting Manual for Florida's
757	Public Community Colleges as:
758	(I)  Instructional; or
759	(II)  Executive Management, Instructional Management, or
760	Institutional Management and the, if a community college
761	determines that recruiting to fill a vacancy in the position is
762	to be conducted in the national or regional market, and the
763	duties and responsibilities of the position include the
764	formulation, interpretation, or implementation of policies, or
765	the performance of functions that are unique or specialized
766	within higher education and that frequently support the mission
767	of the community college.
768	c.  The employee is must be employed in a position not
769	included in the Senior Management Service Class of the Florida
770	Retirement System, as described in s. 121.055.
771	5.  Participants in the program are subject to the same
772	reemployment limitations, renewed membership provisions, and
773	forfeiture provisions as are applicable to regular members of
774	the Florida Retirement System under ss. 121.091(9), 121.122, and
775	121.091(5), respectively. A participant who receives a program
776	distribution funded by employer contributions shall be deemed to
777	be retired from a state-administered retirement system if the
778	participant is subsequently employed with an employer that
779	participates in the Florida Retirement System.
780	6.  Eligible community college employees are compulsory
781	members of the Florida Retirement System until, pursuant to s.
782	1012.875, a written election to withdraw from the system and
783	participate in the State Community College System optional
784	retirement program is filed with the program administrator and
785	received by the division.
786	a.  A community college employee whose program eligibility
787	results from initial employment shall must be enrolled in the
788	State Community College System optional retirement program
789	retroactive to the first day of eligible employment. The
790	employer retirement contributions paid through the month of the
791	employee plan change shall be transferred to the community
792	college to the employee's optional program account, and,
793	effective the first day of the next month, the employer shall
794	pay the applicable contributions based upon subparagraph 1.
795	b.  A community college employee whose program eligibility
796	is due to the subsequent designation of the employee's position
797	as one of those specified in subparagraph 4., or due to the
798	employee's appointment, promotion, transfer, or reclassification
799	to a position specified in subparagraph 4., must be enrolled in
800	the program on the first day of the first full calendar month
801	that such change in status becomes effective. The employer
802	retirement contributions paid from the effective date through
803	the month of the employee plan change must be transferred to the
804	community college to the employee's optional program account,
805	and, effective the first day of the next month, the employer
806	shall pay the applicable contributions based upon subparagraph
807	1.
808	7.  Effective July 1, 2003, through December 31, 2008, any
809	participant in of the State Community College System optional
810	retirement program who has service credit in the pension defined
811	benefit plan of the Florida Retirement System for the period
812	between his or her first eligibility to transfer from the
813	pension defined benefit plan to the optional retirement program
814	and the actual date of transfer may, during employment, transfer
815	to the optional retirement program a sum representing the
816	present value of the accumulated benefit obligation under the
817	defined benefit retirement program for the period of service
818	credit. Upon transfer, all service credit previously earned
819	under the pension plan defined benefit program of the Florida
820	Retirement System during this period is nullified for purposes
821	of entitlement to a future benefit under the pension plan
822	defined benefit program of the Florida Retirement System.
823	(3)  SOCIAL SECURITY COVERAGE.-Social security coverage
824	shall be provided for all officers and employees who become
825	members under the provisions of subsection (1) or subsection
826	(2). Any modification of the present agreement with the Social
827	Security Administration, or referendum required under the Social
828	Security Act, for the purpose of providing social security
829	coverage for any member shall be requested by the state agency
830	in compliance with the applicable provisions of the Social
831	Security Act governing such coverage. However, retroactive
832	social security coverage for service prior to December 1, 1970,
833	with the employer shall not be provided for a any member who was
834	not covered under the agreement as of November 30, 1970. The
835	employer-paid employee contributions specified in s. 121.71(2)
836	are subject to taxes imposed under the Federal Insurance
837	Contributions Act, 26 U.S.C. ss. 3101-3128.
838	Section 7.  Section 121.0515, Florida Statutes, is amended
839	to read:
840	121.0515  Special Risk Class membership.-
841	(1)  ESTABLISHMENT OF CLASS LEGISLATIVE INTENT.-There is
842	established a separate In creating the Special Risk class of
843	membership within the Florida Retirement System, to be known as
844	the "Special Risk Class," it is the intent and purpose of the
845	Legislature to recognize that persons employed in certain
846	categories of law enforcement, firefighting, criminal detention,
847	and emergency medical care positions are required as one of the
848	essential functions of their positions to perform work that is
849	physically demanding or arduous, or work that requires
850	extraordinary agility and mental acuity, and that such persons,
851	because of diminishing physical and mental faculties, may find
852	that they are not able, without risk to the health and safety of
853	themselves, the public, or their coworkers, to continue
854	performing such duties and thus enjoy the full career and
855	retirement benefits enjoyed by persons employed in other
856	membership classes positions and that, if they find it
857	necessary, due to the physical and mental limitations of their
858	age, to retire at an earlier age and usually with less service,
859	they will suffer an economic deprivation therefrom. To address
860	Therefore, as a means of recognizing the peculiar and special
861	problems of this class of employees, it is the intent and
862	purpose of the Legislature to establish a class of retirement
863	membership is established that awards more retirement credit per
864	year of service than that awarded to other employees; however,
865	nothing contained herein shall require ineligibility for Special
866	Risk Class membership upon reaching age 55.
867	(2)  MEMBERSHIP.-
868	(a)  Until October 1, 1978, "special risk member" means any
869	officer or employee whose application is approved by the
870	administrator and who receives salary payments for work
871	performed as a peace officer; law enforcement officer; police
872	officer; highway patrol officer; custodial employee at a
873	correctional or detention facility; correctional agency employee
874	whose duties and responsibilities involve direct contact with
875	inmates, but excluding secretarial and clerical employees;
876	firefighter; or an employee in any other job in the field of law
877	enforcement or fire protection if the duties of such person are
878	certified as hazardous by his or her employer.
879	(b)  Effective October 1, 1978, through September 30, 1999,
880	"special risk member" means a member of the Florida Retirement
881	System who is designated as a special risk member by the
882	division in accordance with this section. Such member must be
883	employed as a law enforcement officer, a firefighter, or a
884	correctional officer and must meet certain other special
885	criteria as set forth in this section.
886	(c)  Effective October 1, 1999, "special risk member" means
887	a member of the Florida Retirement System who is designated as a
888	special risk member by the division in accordance with this
889	section. Such member must be employed as a law enforcement
890	officer, a firefighter, a correctional officer, an emergency
891	medical technician, or a paramedic and must meet certain other
892	special criteria as set forth in this section.
893	(d)1.  Effective January 1, 2001, "special risk member"
894	includes any member who is employed as a community-based
895	correctional probation officer and meets the special criteria
896	set forth in paragraph (3)(e).
897	2.  Effective January 1, 2001, "special risk member"
898	includes any professional health care bargaining unit or non-
899	unit member who is employed by the Department of Corrections or
900	the Department of Children and Family Services and meets the
901	special criteria set forth in paragraph (3)(f).
902	(e)  Effective July 1, 2001, the term "special risk member"
903	includes any member who is employed as a youth custody officer
904	by the Department of Juvenile Justice and meets the special
905	criteria set forth in paragraph (3)(g).
906	(f)  Effective August 1, 2008, "special risk member"
907	includes any member who meets the special criteria for continued
908	membership set forth in paragraph (3)(k).
909	(3)(2)  CRITERIA.-A member, to be designated as a special
910	risk member, must meet the following criteria:
911	(a)  Effective October 1, 1978, the member must be employed
912	as a law enforcement officer and be certified, or required to be
913	certified, in compliance with s. 943.1395; however, sheriffs and
914	elected police chiefs shall be excluded from meeting the
915	certification requirements of this paragraph. In addition, the
916	member's duties and responsibilities must include the pursuit,
917	apprehension, and arrest of law violators or suspected law
918	violators; or as of July 1, 1982, the member must be an active
919	member of a bomb disposal unit whose primary responsibility is
920	the location, handling, and disposal of explosive devices; or
921	the member must be the supervisor or command officer of a member
922	or members who have such responsibilities; provided, however,
923	administrative support personnel, including, but not limited to,
924	those whose primary duties and responsibilities are in
925	accounting, purchasing, legal, and personnel, shall not be
926	included;
927	(b)  Effective October 1, 1978, the member must be employed
928	as a firefighter and be certified, or required to be certified,
929	in compliance with s. 633.35 and be employed solely within the
930	fire department of a local government employer or an agency of
931	state government with firefighting responsibilities. In
932	addition, the member's duties and responsibilities must include
933	on-the-scene fighting of fires; as of October 1, 2001, fire
934	prevention, or firefighter training; as of October 1, 2001,
935	direct supervision of firefighting units, fire prevention, or
936	firefighter training; or as of July 1, 2001, aerial firefighting
937	surveillance performed by fixed-wing aircraft pilots employed by
938	the Division of Forestry of the Department of Agriculture and
939	Consumer Services; or the member must be the supervisor or
940	command officer of a member or members who have such
941	responsibilities; provided, however, administrative support
942	personnel, including, but not limited to, those whose primary
943	duties and responsibilities are in accounting, purchasing,
944	legal, and personnel, shall not be included and further provided
945	that all periods of creditable service in fire prevention or
946	firefighter training, or as the supervisor or command officer of
947	a member or members who have such responsibilities, and for
948	which the employer paid the special risk contribution rate,
949	shall be included;
950	(c)  Effective October 1, 1978, the member must be employed
951	as a correctional officer and be certified, or required to be
952	certified, in compliance with s. 943.1395. In addition, the
953	member's primary duties and responsibilities must be the
954	custody, and physical restraint when necessary, of prisoners or
955	inmates within a prison, jail, or other criminal detention
956	facility, or while on work detail outside the facility, or while
957	being transported; or as of July 1, 1984, the member must be the
958	supervisor or command officer of a member or members who have
959	such responsibilities; provided, however, administrative support
960	personnel, including, but not limited to, those whose primary
961	duties and responsibilities are in accounting, purchasing,
962	legal, and personnel, shall not be included; however, wardens
963	and assistant wardens, as defined by rule, shall participate in
964	the Special Risk Class;
965	(d)  Effective October 1, 1999, the member must be employed
966	by a licensed Advance Life Support (ALS) or Basic Life Support
967	(BLS) employer as an emergency medical technician or a paramedic
968	and be certified in compliance with s. 401.27. In addition, the
969	member's primary duties and responsibilities must include on-
970	the-scene emergency medical care or as of October 1, 2001,
971	direct supervision of emergency medical technicians or
972	paramedics, or the member must be the supervisor or command
973	officer of one or more members who have such responsibility.
974	However, administrative support personnel, including, but not
975	limited to, those whose primary responsibilities are in
976	accounting, purchasing, legal, and personnel, shall not be
977	included;
978	(e)  Effective January 1, 2001, the member must be employed
979	as a community-based correctional probation officer and be
980	certified, or required to be certified, in compliance with s.
981	943.1395. In addition, the member's primary duties and
982	responsibilities must be the supervised custody, surveillance,
983	control, investigation, and counseling of assigned inmates,
984	probationers, parolees, or community controllees within the
985	community; or the member must be the supervisor of a member or
986	members who have such responsibilities. Administrative support
987	personnel, including, but not limited to, those whose primary
988	duties and responsibilities are in accounting, purchasing, legal
989	services, and personnel management, shall not be included;
990	however, probation and parole circuit and deputy circuit
991	administrators shall participate in the Special Risk Class;
992	(f)  Effective January 1, 2001, the member must be employed
993	in one of the following classes and must spend at least 75
994	percent of his or her time performing duties which involve
995	contact with patients or inmates in a correctional or forensic
996	facility or institution:
997	1.  Dietitian (class codes 5203 and 5204);
998	2.  Public health nutrition consultant (class code 5224);
999	3.  Psychological specialist (class codes 5230 and 5231);
1000	4.  Psychologist (class code 5234);
1001	5.  Senior psychologist (class codes 5237 and 5238);
1002	6.  Regional mental health consultant (class code 5240);
1003	7.  Psychological Services Director-DCF (class code 5242);
1004	8.  Pharmacist (class codes 5245 and 5246);
1005	9.  Senior pharmacist (class codes 5248 and 5249);
1006	10.  Dentist (class code 5266);
1007	11.  Senior dentist (class code 5269);
1008	12.  Registered nurse (class codes 5290 and 5291);
1009	13.  Senior registered nurse (class codes 5292 and 5293);
1010	14.  Registered nurse specialist (class codes 5294 and
1011	5295);
1012	15.  Clinical associate (class codes 5298 and 5299);
1013	16.  Advanced registered nurse practitioner (class codes
1014	5297 and 5300);
1015	17.  Advanced registered nurse practitioner specialist
1016	(class codes 5304 and 5305);
1017	18.  Registered nurse supervisor (class codes 5306 and
1018	5307);
1019	19.  Senior registered nurse supervisor (class codes 5308
1020	and 5309);
1021	20.  Registered nursing consultant (class codes 5312 and
1022	5313);
1023	21.  Quality management program supervisor (class code
1024	5314);
1025	22.  Executive nursing director (class codes 5320 and
1026	5321);
1027	23.  Speech and hearing therapist (class code 5406); or
1028	24.  Pharmacy manager (class code 5251);
1029	(g)  Effective July 1, 2001, the member must be employed as
1030	a youth custody officer and be certified, or required to be
1031	certified, in compliance with s. 943.1395. In addition, the
1032	member's primary duties and responsibilities must be the
1033	supervised custody, surveillance, control, investigation,
1034	apprehension, arrest, and counseling of assigned juveniles
1035	within the community;
1036	(h)  Effective October 1, 2005, through June 30, 2008, the
1037	member must be employed by a law enforcement agency or medical
1038	examiner's office in a forensic discipline recognized by the
1039	International Association for Identification and must qualify
1040	for active membership in the International Association for
1041	Identification. The member's primary duties and responsibilities
1042	must include the collection, examination, preservation,
1043	documentation, preparation, or analysis of physical evidence or
1044	testimony, or both, or the member must be the direct supervisor,
1045	quality management supervisor, or command officer of one or more
1046	individuals with such responsibility. Administrative support
1047	personnel, including, but not limited to, those whose primary
1048	responsibilities are clerical or in accounting, purchasing,
1049	legal, and personnel, shall not be included;
1050	(i)  Effective July 1, 2008, the member must be employed by
1051	the Department of Law Enforcement in the crime laboratory or by
1052	the Division of State Fire Marshal in the forensic laboratory in
1053	one of the following classes:
1054	1.  Forensic technologist (class code 8459);
1055	2.  Crime laboratory technician (class code 8461);
1056	3.  Crime laboratory analyst (class code 8463);
1057	4.  Senior crime laboratory analyst (class code 8464);
1058	5.  Crime laboratory analyst supervisor (class code 8466);
1059	6.  Forensic chief (class code 9602); or
1060	7.  Forensic services quality manager (class code 9603);
1061	(j)  Effective July 1, 2008, the member must be employed by
1062	a local government law enforcement agency or medical examiner's
1063	office and must spend at least 65 percent of his or her time
1064	performing duties that involve the collection, examination,
1065	preservation, documentation, preparation, or analysis of human
1066	tissues or fluids or physical evidence having potential
1067	biological, chemical, or radiological hazard or contamination,
1068	or use chemicals, processes, or materials that may have
1069	carcinogenic or health-damaging properties in the analysis of
1070	such evidence, or the member must be the direct supervisor of
1071	one or more individuals having such responsibility. If a special
1072	risk member changes to another position within the same agency,
1073	he or she must submit a complete application as provided in
1074	paragraph (4)(3)(a); or
1075	(k)  The member must have already qualified for and be
1076	actively participating in special risk membership under
1077	paragraph (a), paragraph (b), or paragraph (c), must have
1078	suffered a qualifying injury as defined in this paragraph, must
1079	not be receiving disability retirement benefits as provided in
1080	s. 121.091(4), and must satisfy the requirements of this
1081	paragraph.
1082	1.  The ability to qualify for the class of membership
1083	defined in paragraph (2)(f) s. 121.021(15)(f) shall occur when
1084	two licensed medical physicians, one of whom is a primary
1085	treating physician of the member, certify the existence of the
1086	physical injury and medical condition that constitute a
1087	qualifying injury as defined in this paragraph and that the
1088	member has reached maximum medical improvement after August 1,
1089	2008. The certifications from the licensed medical physicians
1090	must include, at a minimum, that the injury to the special risk
1091	member has resulted in a physical loss, or loss of use, of at
1092	least two of the following: left arm, right arm, left leg, or
1093	right leg; and:
1094	a.  That this physical loss or loss of use is total and
1095	permanent, except in the event that the loss of use is due to a
1096	physical injury to the member's brain, in which event the loss
1097	of use is permanent with at least 75-percent loss of motor
1098	function with respect to each arm or leg affected.
1099	b.  That this physical loss or loss of use renders the
1100	member physically unable to perform the essential job functions
1101	of his or her special risk position.
1102	c.  That, notwithstanding this physical loss or loss of
1103	use, the individual is able to perform the essential job
1104	functions required by the member's new position, as provided in
1105	subparagraph 3.
1106	d.  That use of artificial limbs is either not possible or
1107	does not alter the member's ability to perform the essential job
1108	functions of the member's position.
1109	e.  That the physical loss or loss of use is a direct
1110	result of a physical injury and not a result of any mental,
1111	psychological, or emotional injury.
1112	2.  For the purposes of this paragraph, "qualifying injury"
1113	means an injury sustained in the line of duty, as certified by
1114	the member's employing agency, by a special risk member that
1115	does not result in total and permanent disability as defined in
1116	s. 121.091(4)(b). An injury is a qualifying injury when the
1117	injury is a physical injury to the member's physical body
1118	resulting in a physical loss, or loss of use, of at least two of
1119	the following: left arm, right arm, left leg, or right leg.
1120	Notwithstanding anything in this section to the contrary, an
1121	injury that would otherwise qualify as a qualifying injury shall
1122	not be considered a qualifying injury if and when the member
1123	ceases employment with the employer for whom he or she was
1124	providing special risk services on the date the injury occurred.
1125	3.  The new position, as described in sub-subparagraph
1126	1.c., that is required for qualification as a special risk
1127	member under this paragraph is not required to be a position
1128	with essential job functions that entitle an individual to
1129	special risk membership. Whether a new position as described in
1130	sub-subparagraph 1.c. exists and is available to the special
1131	risk member is a decision to be made solely by the employer in
1132	accordance with its hiring practices and applicable law.
1133	4.  This paragraph does not grant or create additional
1134	rights for any individual to continued employment or to be hired
1135	or rehired by his or her employer that are not already provided
1136	within the Florida Statutes, the State Constitution, the
1137	Americans with Disabilities Act, if applicable, or any other
1138	applicable state or federal law.
1139	(4)(3)  PROCEDURE FOR DESIGNATING.-
1140	(a)1.  Any Regular Class member of the Florida Retirement
1141	System employed by a county, city, or special district who feels
1142	that his or her position he or she meets the criteria set forth
1143	in this section for membership in the Special Risk Class may
1144	request that his or her employer submit an application to the
1145	department requesting that the department designate him or her
1146	as a Special Risk Class member. Such Regular Class member shall
1147	complete the appropriate portions of an Application for Special
1148	Risk Membership provided in Form FRS-400 or Form FRS-405. If the
1149	employer agrees that the member meets the requirements for
1150	Special Risk Class membership, the employer shall certify and
1151	submit an application as set forth in this section and submit a
1152	copy of the current official job description of the member's
1153	duties showing the percentage of time spent performing each duty
1154	and a copy of a personnel action form showing the effective date
1155	of membership in that position to the department on in behalf of
1156	the employee containing a certification that the member meets
1157	the criteria for special risk membership set forth in this
1158	section and such other supporting documentation as may be
1159	required by administrative rule. The department shall, within 90
1160	days, either designate or refuse to designate the member as a
1161	special risk member.
1162	2.  Upon receipt of the completed application, proof of
1163	certification, and supporting documentation, the department
1164	shall determine if the member meets the requirements for Special
1165	Risk Class membership. If the requirements are met, the
1166	department shall approve the member for Special Risk Class
1167	membership. The employer shall certify to the department any
1168	changes to the duties and responsibilities of a Special Risk
1169	Class member. The department shall review the documentation for
1170	changes to duties and responsibilities and either continue the
1171	approval of Special Risk Class membership or reclassify the
1172	member to Regular Class membership.
1173	3.  If the employer refuses to certify the member's
1174	application for Special Risk Class membership, the employer
1175	shall notify the member of the employer's refusal to certify and
1176	the reasons for the refusal. If the employer declines to submit
1177	the member's application to the department, or if the department
1178	does not designate the member to the as a Special Risk Class, or
1179	the department removes the member from the Special Risk Class
1180	member, the member or the employer may appeal to the State
1181	Retirement Commission, as provided in s. 121.23, for designation
1182	as a Special Risk Class member. A member who receives a final
1183	affirmative ruling pursuant to such appeal for Special Risk
1184	Class membership shall have Special Risk Class membership
1185	retroactive to the date such member would have had Special Risk
1186	Class membership had such membership been approved by the
1187	employer and the department, as determined by the department,
1188	and the employer contributions shall be paid in full within 1
1189	year after such final ruling.
1190	(b)1.  Applying the criteria set forth in this section, the
1191	Department of Management Services shall specify which current
1192	and newly created classes of positions under the uniform
1193	classification plan established pursuant to chapter 110 entitle
1194	the incumbents of positions in those classes to membership in
1195	the Special Risk Class. Only employees employed in the classes
1196	so specified shall be special risk members.
1197	2.  When a class is not specified by the department as
1198	provided in subparagraph 1., the employing agency may petition
1199	the State Retirement Commission for approval in accordance with
1200	s. 121.23.
1201	(5)(4)  REMOVAL OF SPECIAL RISK CLASS MEMBERSHIP.-
1202	(a)  Any member who is a special risk member on October 1,
1203	1978, and who fails to meet the criteria for special risk
1204	membership established by this section shall have his or her
1205	special risk designation removed and thereafter shall be a
1206	regular member and shall earn only regular membership credit.
1207	The department shall have the authority to review the special
1208	risk designation of members to determine whether or not those
1209	members continue to meet the criteria for special risk
1210	membership.
1211	(b)  Any member who is a special risk member on July 1,
1212	2008, and who became eligible to participate under paragraph
1213	(3)(2)(h) but fails to meet the criteria for special risk
1214	membership established by paragraph (3)(2)(i) or paragraph
1215	(3)(2)(j) shall have his or her special risk designation removed
1216	and thereafter shall be a Regular Class member and earn only
1217	Regular Class membership credit. The department may review the
1218	special risk designation of members to determine whether or not
1219	those members continue to meet the criteria for special risk
1220	membership.
1221	(c)  Any member who is a Special Risk Class member and who
1222	fails to meet the criteria for the Special Risk Class shall have
1223	his or her special risk class designation removed and thereafter
1224	shall be a Regular Class member and earn only Regular Class
1225	membership service credit. The department may review the Special
1226	Risk Class designation of members to determine whether or not
1227	those members continue to meet the criteria for Special Risk
1228	Class membership.
1229	(6)(5)  CREDIT FOR PAST SERVICE.-A special risk member may
1230	purchase retirement credit in the Special Risk Class based upon
1231	past service, and may upgrade retirement credit for such past
1232	service, to the extent of 2 percent of the member's average
1233	monthly compensation as specified in s. 121.091(1)(a) for such
1234	service as follows:
1235	(a)  The member may purchase special risk credit for past
1236	service with a city or special district which has elected to
1237	join the Florida Retirement System, or with a participating
1238	agency to which a member's governmental unit was transferred,
1239	merged, or consolidated as provided in s. 121.081(1)(f), if the
1240	member was employed with the city or special district at the
1241	time it commenced participating in the Florida Retirement System
1242	or with the governmental unit at the time of its transfer,
1243	merger, or consolidation with the participating agency. The
1244	service must satisfy the criteria set forth in subsection (3)
1245	(2) for special risk membership as a law enforcement officer,
1246	firefighter, or correctional officer; however, no certificate or
1247	waiver of certificate of compliance with s. 943.1395 or s.
1248	633.35 shall be required for such service.
1249	(b)  Contributions for upgrading the additional special
1250	risk credit pursuant to this subsection shall be equal to the
1251	difference in the employer and, if applicable, employee
1252	contributions paid and the special risk percentage rate of gross
1253	salary in effect at the time of purchase for the period being
1254	claimed, plus interest thereon at the rate of 4 percent a year
1255	compounded annually from the date of such service until July 1,
1256	1975, and 6.5 percent a year thereafter until the date of
1257	payment. This past service may be purchased by the member or by
1258	the employer on behalf of the member.
1259	(7)(6)  CREDIT FOR PRIOR SERVICE.-A special risk member who
1260	has creditable service with an employer under chapter 122 or
1261	chapter 321, or was employed as a correctional counselor with
1262	the Department of Corrections between December 1, 1970, and
1263	September 30, 1979, in a position which satisfies the criteria
1264	provided for in subsection (3) (2) for special risk membership
1265	except the requirement for a certificate or waiver of
1266	certificate, shall have those years of service counted towards
1267	the attainment of the normal retirement date as a special risk
1268	member under this chapter. The percentage value of each such
1269	year of creditable service under chapter 122, chapter 321, or as
1270	a correctional counselor shall not change as a result of the
1271	application of this subsection. A special risk member who has
1272	taken a refund of contributions for such creditable service
1273	under chapter 122 or chapter 321 and has reclaimed it as prior
1274	service credit under this chapter shall be permitted to have
1275	such creditable service counted towards the attainment of the
1276	normal retirement date for the Special Risk Class of membership
1277	under this chapter.
1278	(8)(7)  SPECIAL RISK ADMINISTRATIVE SUPPORT CLASS RETENTION
1279	OF SPECIAL RISK NORMAL RETIREMENT DATE.-
1280	(a)  A special risk member who is moved or reassigned to a
1281	nonspecial risk law enforcement, firefighting, correctional, or
1282	emergency medical care administrative support position with the
1283	same agency, or who is subsequently employed in such a position
1284	with any law enforcement, firefighting, correctional, or
1285	emergency medical care agency under the Florida Retirement
1286	System, shall participate in the Special Risk Administrative
1287	Support Class and shall earn credit for such service at the same
1288	percentage rate as that earned by a regular member.
1289	Notwithstanding the provisions of subsection (5) (4), service in
1290	such an administrative support position shall, for purposes of
1291	s. 121.091, apply toward satisfaction of the special risk normal
1292	retirement date, as defined in s. 121.021(29)(b), provided that,
1293	while in such position, the member remains certified as a law
1294	enforcement officer, firefighter, correctional officer,
1295	emergency medical technician, or paramedic; remains subject to
1296	reassignment at any time to a position qualifying for special
1297	risk membership; and completes an aggregate of 6 or more years
1298	of service as a designated special risk member prior to
1299	retirement.
1300	(b)  Upon application by a member, the provisions of this
1301	subsection shall apply, with respect to such member,
1302	retroactively to October 1, 1978, provided that the member was
1303	removed from the Special Risk Class effective October 1, 1978,
1304	due to a change in special risk criteria as a result of the
1305	enactment of chapter 78-308, Laws of Florida, or was reassigned
1306	or employed for training or career development or to fill a
1307	critical agency need.
1308	(c)  The department shall adopt such rules as are required
1309	to administer this subsection.
1310	(d)  Notwithstanding any provision of this subsection to
1311	the contrary, this subsection does not apply to any special risk
1312	member who qualifies for continued membership pursuant to the
1313	provisions of paragraph (3)(2)(k).
1314	(9)(8)  RESTORATION OF SPECIAL RISK CREDIT FOR SPECIFIED
1315	PERIOD OF EMPLOYMENT.-A special risk member who was removed from
1316	the Special Risk Class effective October 1978, for the sole
1317	reason that he or she did not possess the required certificate
1318	or temporary waiver of certificate, and who obtained
1319	certification and was approved for special risk membership on or
1320	before June 30, 1982, shall be permitted to have special risk
1321	credit restored for that period upon:
1322	(a)  Certification by his or her employer that all
1323	requirements for special risk membership except the requirement
1324	for certification or temporary waiver of certification were met;
1325	and
1326	(b)  Payment of contributions equal to the difference in
1327	the contributions that were paid during the period and the
1328	contributions required for special risk members during that
1329	period, plus 6.5 percent interest thereon, compounded each June
1330	30 from date of service until date of payment.
1331
1332	This credit may be purchased by the member or by the employer on
1333	behalf of the member.
1334	(10)(9)  CREDIT FOR UPGRADED SERVICE.-
1335	(a)  Any member of the Special Risk Class who has earned
1336	creditable service through September 30, 1999, in another
1337	membership class of the Florida Retirement System as an
1338	emergency medical technician or paramedic, which service is
1339	within the purview of the Special Risk Class, may purchase
1340	additional retirement credit to upgrade such service to Special
1341	Risk Class service, to the extent of the percentages of the
1342	member's average final compensation provided in s.
1343	121.091(1)(a)2. Contributions for upgrading such service to
1344	Special Risk Class credit under this subsection shall be equal
1345	to the difference in the contributions paid and the Special Risk
1346	Class contribution rate as a percentage of gross salary in
1347	effect for the period being claimed, plus interest thereon at
1348	the rate of 6.5 percent a year, compounded annually until the
1349	date of payment. This service credit may be purchased by the
1350	employer on behalf of the member.
1351	(b)  Any member of the Special Risk Class who has earned
1352	creditable service through September 30, 2001, in another
1353	membership class of the Florida Retirement System whose
1354	responsibilities included fire prevention or firefighter
1355	training, which service is within the purview of the Special
1356	Risk Class, may purchase additional retirement credit to upgrade
1357	such service to Special Risk Class service, to the extent of the
1358	percentages of the member's average final compensation provided
1359	in s. 121.091(1)(a)2. Contributions for upgrading such service
1360	to Special Risk Class credit under this subsection shall be
1361	equal to the difference in the contributions paid and the
1362	Special Risk Class contribution rate as a percentage of gross
1363	salary in effect for the period being claimed, plus interest
1364	thereon at the rate of 6.5 percent a year, compounded annually
1365	until the date of payment. This service credit may be purchased
1366	by the employer on behalf of the member.
1367	(c)  Any member of the Special Risk Class who has earned
1368	creditable service through June 30, 2005, in another membership
1369	class of the Florida Retirement System in a position with the
1370	Department of Law Enforcement or the Division of State Fire
1371	Marshal and became covered by the Special Risk Class as
1372	described in paragraph (3)(2)(i), or with a local government law
1373	enforcement agency or medical examiner's office and became
1374	covered by the Special Risk Class as described in paragraph
1375	(3)(2)(j), which service is within the purview of the Special
1376	Risk Class, and is employed in such position on or after July 1,
1377	2008, may purchase additional retirement credit to upgrade such
1378	service to Special Risk Class service, to the extent of the
1379	percentages of the member's average final compensation provided
1380	in s. 121.091(1)(a)2. The cost for such credit shall be an
1381	amount representing the actuarial accrued liability for the
1382	difference in accrual value during the affected period of
1383	service. The cost shall be calculated using the discount rate
1384	and other relevant actuarial assumptions that were used to value
1385	the Florida Retirement System Pension defined benefit Plan
1386	liabilities in the most recent actuarial valuation. The division
1387	shall ensure that the transfer sum is prepared using a formula
1388	and methodology certified by an enrolled actuary. The cost must
1389	be paid immediately upon notification by the division. The local
1390	government employer may purchase the upgraded service credit on
1391	behalf of the member if the member has been employed by that
1392	employer for at least 3 years.
1393	Section 8.  Paragraphs (a) and (d) of subsection (4),
1394	paragraph (b) of subsection (7), and subsection (10) of section
1395	121.052, Florida Statutes, are amended, present paragraph (c) of
1396	subsection (7) of that section is redesignated as paragraph (d),
1397	and a new paragraph (c) is added to that subsection, to read:
1398	121.052  Membership class of elected officers.-
1399	(4)  PARTICIPATION BY ELECTED OFFICERS SERVING A SHORTENED
1400	TERM DUE TO APPORTIONMENT, FEDERAL INTERVENTION, ETC.-
1401	(a)  Any duly elected officer whose term of office was
1402	shortened by legislative or judicial apportionment pursuant to
1403	the provisions of s. 16, Art. III of the State Constitution may,
1404	after the term of office to which he or she was elected is
1405	completed, pay into the System Trust Fund the amount of
1406	contributions that would have been made by the officer or the
1407	officer's employer on his or her behalf, plus 4 percent interest
1408	compounded annually from the date he or she left office until
1409	July 1, 1975, and 6.5 percent interest compounded annually
1410	thereafter, and may receive service credit for the length of
1411	time the officer would have served if such term had not been
1412	shortened by apportionment.
1413	(d)1.  Any justice or judge, or any retired justice or
1414	judge who retired before July 1, 1993, who has attained the age
1415	of 70 years and who is prevented under s. 8, Art. V of the State
1416	Constitution from completing his or her term of office because
1417	of age may elect to purchase credit for all or a portion of the
1418	months he or she would have served during the remainder of the
1419	term of office, but he or she may claim those months only after
1420	the date the service would have occurred. The justice or judge
1421	must pay into the System Trust Fund the amount of contributions
1422	that would have been made by the employer on his or her behalf
1423	for the period of time being claimed, plus 6.5 percent interest
1424	thereon compounded each June 30 from the date he or she left
1425	office, in order to receive service credit in this class for the
1426	period of time being claimed. After the date the service would
1427	have occurred, and upon payment of the required contributions,
1428	the retirement benefit of a retired justice or judge shall will
1429	be adjusted prospectively to include the this additional
1430	creditable service; however, such adjustment may be made only
1431	once.
1432	2.  Any justice or judge who does not seek election to a
1433	subsequent term of office because he or she would be prevented
1434	under s. 8, Art. V of the State Constitution from completing
1435	such term of office upon attaining the age of 70 years may elect
1436	to purchase service credit for service as a temporary judge as
1437	assigned by the court if the temporary assignment follows
1438	immediately the last full term of office served and the purchase
1439	is limited to the number of months of service needed to vest
1440	retirement benefits. To receive retirement credit for such
1441	temporary service beyond termination, the justice or judge must
1442	pay into the System Trust Fund the amount of contributions that
1443	would have been made by the justice or judge and the employer on
1444	his or her behalf had he or she continued in office for the
1445	period of time being claimed, plus 6.5 percent interest thereon
1446	compounded each June 30 from the date he or she left office.
1447	(7)  CONTRIBUTIONS.-
1448	(b)  The employer paying the salary of a member of the
1449	Elected Officers' Class shall contribute an amount as specified
1450	in this subsection or s. 121.71, as appropriate, which shall
1451	constitute the entire employer retirement contribution with
1452	respect to such member. The employer shall also withhold one-
1453	half of the entire contribution of the member required for
1454	social security coverage. Effective July 1, 2011, each member of
1455	the Elected Officers' Class shall pay employee contributions as
1456	specified in s. 121.71.
1457	(c)  If a member of the Elected Officers' Class ceases to
1458	fill an office covered by this class for 3 calendar months for
1459	any reason other than retirement and has not been employed in
1460	any capacity with any participating employer for 3 calendar
1461	months, the member may receive a refund of all contributions he
1462	or she has made to the pension plan, subject to the restrictions
1463	otherwise provided in this chapter. Partial refunds are not
1464	permitted. The refund shall not include any interest earnings on
1465	the contributions for a member of the pension plan. Employer
1466	contributions made on behalf of the member are not refundable. A
1467	member may not receive a refund of employee contributions if a
1468	pending or an approved qualified domestic relations order is
1469	filed against the member's retirement account. By obtaining a
1470	refund of contributions, a member waives all rights under the
1471	Florida Retirement System and the health insurance subsidy
1472	provided under s. 112.363 to the service credit represented by
1473	the refunded contributions, except the right to purchase his or
1474	her prior service credit in accordance with s. 121.081(2).
1475	(10)  ACCRUED SERVICE VALUE.-Prior to July 1, 2011, a
1476	member of the Elected Officers' Class who is a Supreme Court
1477	justice, district court of appeal judge, circuit judge, or
1478	county court judge shall receive judicial retirement credit of 3
1479	1/3 percent of average final compensation, and all other members
1480	shall receive elected officer accrual value retirement credit of
1481	3 percent of average final compensation, for each year of
1482	creditable service in such class. Effective on or after July 1,
1483	2011, a member of the Elected Officers' Class shall receive the
1484	accrual value specified in s. 121.091(1)(a)4., for each year of
1485	creditable service in such class.
1486	Section 9.  Paragraph (a) of subsection (7) of section
1487	121.053, Florida Statutes, is amended to read:
1488	121.053  Participation in the Elected Officers' Class for
1489	retired members.-
1490	(7)  A member who is elected or appointed to an elective
1491	office and who is participating in the Deferred Retirement
1492	Option Program is not subject to termination as defined in s.
1493	121.021, or reemployment limitations as provided in s.
1494	121.091(9), until the end of his or her current term of office
1495	or, if the officer is consecutively elected or reelected to an
1496	elective office eligible for coverage under the Florida
1497	Retirement System, until he or she no longer holds an elective
1498	office, as follows:
1499	(a)  At the end of the 60-month DROP period:
1500	1.  The officer's DROP account may not accrue additional
1501	monthly benefits, but does continue to earn interest as provided
1502	in s. 121.091(13). However, an officer whose DROP participation
1503	begins on or after July 1, 2010, may not continue to earn such
1504	interest.
1505	2.  Retirement contributions, except for unfunded actuarial
1506	liability and health insurance subsidy contributions required in
1507	ss. 121.71(5) and 121.76, are not required of the employer of
1508	the elected officer and additional retirement credit may not be
1509	earned under the Florida Retirement System.
1510	Section 10.  Paragraphs (b) and (j) of subsection (1),
1511	paragraph (b) of subsection (3), paragraph (d) of subsection
1512	(4), and paragraphs (d) and (e) of subsection (6) of section
1513	121.055, Florida Statutes, are amended, present paragraph (c) of
1514	subsection (3) of that section is redesignated as paragraph (d),
1515	and a new paragraph (c) is added to that subsection, to read:
1516	121.055  Senior Management Service Class.-There is hereby
1517	established a separate class of membership within the Florida
1518	Retirement System to be known as the "Senior Management Service
1519	Class," which shall become effective February 1, 1987.
1520	(1)
1521	(b)1.  Except as provided in subparagraph 2., effective
1522	January 1, 1990, participation in the Senior Management Service
1523	Class is shall be compulsory for the president of each community
1524	college, the manager of each participating city or county, and
1525	all appointed district school superintendents. Effective January
1526	1, 1994, additional positions may be designated for inclusion in
1527	the Senior Management Service Class of the Florida Retirement
1528	System, provided that:
1529	a.  Positions to be included in the class are shall be
1530	designated by the local agency employer. Notice of intent to
1531	designate positions for inclusion in the class must shall be
1532	published once a week for 2 consecutive weeks in a newspaper of
1533	general circulation published in the county or counties
1534	affected, as provided in chapter 50.
1535	b.  Up to 10 nonelective full-time positions may be
1536	designated for each local agency employer reporting to the
1537	department of Management Services; for local agencies with 100
1538	or more regularly established positions, additional nonelective
1539	full-time positions may be designated, not to exceed 1 percent
1540	of the regularly established positions within the agency.
1541	c.  Each position added to the class must be a managerial
1542	or policymaking position filled by an employee who is not
1543	subject to continuing contract and serves at the pleasure of the
1544	local agency employer without civil service protection, and who:
1545	(I)  Heads an organizational unit; or
1546	(II)  Has responsibility to effect or recommend personnel,
1547	budget, expenditure, or policy decisions in his or her areas of
1548	responsibility.
1549	2.  In lieu of participation in the Senior Management
1550	Service Class, members of the Senior Management Service Class,
1551	pursuant to the provisions of subparagraph 1., may withdraw from
1552	the Florida Retirement System altogether. The decision to
1553	withdraw from the Florida Retirement System is shall be
1554	irrevocable for as long as the employee holds the such a
1555	position. Any service creditable under the Senior Management
1556	Service Class shall be retained after the member withdraws from
1557	the Florida Retirement System; however, additional service
1558	credit in the Senior Management Service Class may shall not be
1559	earned after such withdrawal. Such members are shall not be
1560	eligible to participate in the Senior Management Service
1561	Optional Annuity Program.
1562	3.  Effective January 1, 2006, through June 30, 2006, an
1563	employee who has withdrawn from the Florida Retirement System
1564	under subparagraph 2. has one opportunity to elect to
1565	participate in either the defined benefit program or the Public
1566	Employee Optional Retirement Program of the Florida Retirement
1567	System.
1568	a.  If the employee elects to participate in the Public
1569	Employee Optional Retirement Program, membership shall be
1570	prospective, and the applicable provisions of s. 121.4501(4)
1571	shall govern the election.
1572	b.  If the employee elects to participate in the defined
1573	benefit program of the Florida Retirement System, the employee
1574	shall, upon payment to the system trust fund of the amount
1575	calculated under sub-sub-subparagraph (I), receive service
1576	credit for prior service based upon the time during which the
1577	employee had withdrawn from the system.
1578	(I)  The cost for such credit shall be an amount
1579	representing the actuarial accrued liability for the affected
1580	period of service. The cost shall be calculated using the
1581	discount rate and other relevant actuarial assumptions that were
1582	used to value the Florida Retirement System defined benefit plan
1583	liabilities in the most recent actuarial valuation. The
1584	calculation must shall include any service already maintained
1585	under the defined benefit plan in addition to the period of
1586	withdrawal. The actuarial accrued liability attributable to any
1587	service already maintained under the defined benefit plan shall
1588	be applied as a credit to the total cost resulting from the
1589	calculation. The division must shall ensure that the transfer
1590	sum is prepared using a formula and methodology certified by an
1591	actuary.
1592	(II)  The employee must transfer a sum representing the net
1593	cost owed for the actuarial accrued liability in sub-sub-
1594	subparagraph (I) immediately following the time of such
1595	movement, determined assuming that attained service equals the
1596	sum of service in the defined benefit program and the period of
1597	withdrawal.
1598	(j)  Except as may otherwise be provided, a any member of
1599	the Senior Management Service Class may purchase additional
1600	retirement credit in such class for creditable service within
1601	the purview of the Senior Management Service Class between
1602	retroactive to February 1, 1987, and June 30, 2011, and may
1603	upgrade retirement credit for such service, to the extent of 2
1604	percent of the member's average monthly compensation as
1605	specified in paragraph (4)(d) for such service. Contributions
1606	for upgrading the additional Senior Management Service credit
1607	pursuant to this paragraph shall be equal to the difference in
1608	the employer and, if applicable, employee contributions paid and
1609	the Senior Management Service Class contribution rate as a
1610	percentage of gross salary in effect for the period being
1611	claimed, plus interest thereon at the rate of 6.5 percent a
1612	year, compounded annually until the date of payment. This
1613	service credit may be purchased by the employer on behalf of the
1614	member.
1615	(3)
1616	(b)  The employer paying the salary of a member of the
1617	Senior Management Service Class shall contribute an amount as
1618	specified in this section or s. 121.71, as appropriate, which
1619	shall constitute the entire employer retirement contribution
1620	with respect to such member. The employer shall also withhold
1621	one-half of the entire contribution of the member required for
1622	social security coverage. Effective July 1, 2011, each member
1623	shall pay employee contributions as specified in s. 121.71.
1624	(c)  Upon termination of employment from all participating
1625	employers for 3 calendar months for any reason other than
1626	retirement pursuant to s. 121.021(39)(c), a member may receive a
1627	refund of all contributions he or she has made to the pension
1628	plan, subject to the restrictions otherwise provided in this
1629	chapter. Partial refunds are not permitted. The refund shall not
1630	include any interest earnings on the contributions for a member
1631	of the pension plan. Employer contributions made on behalf of
1632	the member are not refundable. A member may not receive a refund
1633	of employee contributions if a pending or an approved qualified
1634	domestic relations order is filed against the member's
1635	retirement account. By obtaining a refund of contributions, a
1636	member waives all rights under the Florida Retirement System and
1637	the health insurance subsidy provided under s. 112.363 to the
1638	service credit represented by the refunded contributions, except
1639	the right to purchase his or her prior service credit in
1640	accordance with s. 121.081(2).
1641	(4)
1642	(d)1.  A member of the Senior Management Service Class
1643	shall receive retirement credit at the rate of 2 percent of
1644	average final compensation for each year of service in such
1645	class between February 1, 1987, and June 30, 2011 after January
1646	31, 1987.
1647	2.  Effective on or after July 1, 2011, a member of the
1648	Senior Management Service Class shall receive the accrual value
1649	specified in s. 121.091(1)(a)3., for each year of creditable
1650	service in such class.
1651	(6)
1652	(d)  Contributions.-
1653	1.  Through June 30, 2001, each employer shall contribute
1654	on behalf of each participant in the Senior Management Service
1655	Optional Annuity Program an amount equal to the normal cost
1656	portion of the employer retirement contribution which would be
1657	required if the participant were a Senior Management Service
1658	Class member of the Florida Retirement System pension plan
1659	defined benefit program, plus the portion of the contribution
1660	rate required in s. 112.363(8) that would otherwise be assigned
1661	to the Retiree Health Insurance Subsidy Trust Fund. Effective
1662	July 1, 2001, each employer shall contribute on behalf of each
1663	participant in the optional program an amount equal to 12.49
1664	percent of the participant's gross monthly compensation. The
1665	department shall deduct an amount approved by the Legislature to
1666	provide for the administration of this program. The payment of
1667	the contributions to the optional program which is required by
1668	this subparagraph for each participant shall be made by the
1669	employer to the department, which shall forward the
1670	contributions to the designated company or companies contracting
1671	for payment of benefits for the participant under the program.
1672	2.  Each employer shall contribute on behalf of each
1673	participant in the Senior Management Service Optional Annuity
1674	Program an amount equal to the unfunded actuarial accrued
1675	liability portion of the employer contribution which would be
1676	required for members of the Senior Management Service Class in
1677	the Florida Retirement System. This contribution shall be paid
1678	to the department for transfer to the Florida Retirement System
1679	Trust Fund.
1680	3.  An Optional Annuity Program Trust Fund shall be
1681	established in the State Treasury and administered by the
1682	department to make payments to provider companies on behalf of
1683	the optional annuity program participants, and to transfer the
1684	unfunded liability portion of the state optional annuity program
1685	contributions to the Florida Retirement System Trust Fund.
1686	4.  Contributions required for social security by each
1687	employer and each participant, in the amount required for social
1688	security coverage as now or hereafter may be provided by the
1689	federal Social Security Act shall be maintained for each
1690	participant in the Senior Management Service retirement program
1691	and shall be in addition to the retirement contributions
1692	specified in this paragraph.
1693	5.  Each participant in the Senior Management Service
1694	Optional Annuity Program may contribute by way of salary
1695	reduction or deduction a percentage amount of the participant's
1696	gross compensation not to exceed the percentage amount
1697	contributed by the employer to the optional annuity program.
1698	Payment of the participant's contributions shall be made by the
1699	employer to the department, which shall forward the
1700	contributions to the designated company or companies contracting
1701	for payment of benefits for the participant under the program.
1702	(e)  Benefits.-
1703	1.  Benefits under the Senior Management Service Optional
1704	Annuity Program are payable only to participants in the program,
1705	or their beneficiaries as designated by the participant in the
1706	contract with the provider company, and must be paid by the
1707	designated company in accordance with the terms of the annuity
1708	contract applicable to the participant. A participant must be
1709	terminated from all employment relationships with Florida
1710	Retirement System employers as provided in s. 121.021(39) to
1711	begin receiving the employee-funded and employer-funded benefit.
1712	Benefits funded by employee and employer contributions are
1713	payable under the terms of the contract to the participant, his
1714	or her beneficiary, or his or her estate, in addition to:
1715	a.  A lump-sum payment to the beneficiary upon the death of
1716	the participant;
1717	b.  A cash-out of a de minimis account upon the request of
1718	a former participant who has been terminated for a minimum of 6
1719	calendar months from the employment that entitled him or her to
1720	optional annuity program participation. Such cash-out must be a
1721	complete liquidation of the account balance with that company
1722	and is subject to the Internal Revenue Code;
1723	c.  A mandatory distribution of a de minimis account of a
1724	former participant who has been terminated for a minimum of 6
1725	calendar months from the employment that entitled him or her to
1726	optional annuity program participation as authorized by the
1727	department; or
1728	d.  A lump-sum direct rollover distribution whereby all
1729	accrued benefits, plus interest and investment earnings, are
1730	paid from the participant's account directly to the custodian of
1731	an eligible retirement plan, as defined in s. 402(c)(8)(B) of
1732	the Internal Revenue Code, on behalf of the participant.
1733	2.  Under the Senior Management Service Optional Annuity
1734	Program, benefits are not payable for employee hardships,
1735	unforeseeable emergencies, loans, medical expenses, educational
1736	expenses, purchase of a principal residence, payments necessary
1737	to prevent eviction or foreclosure on an employee's principal
1738	residence, or any other reason prior to termination from all
1739	employment relationships with participating employers, as
1740	provided in s. 121.021(39).
1741	3.2.  The benefits payable to any person under the Senior
1742	Management Service Optional Annuity Program, and any
1743	contribution accumulated under such program, are not subject to
1744	assignment, execution, or attachment or to any legal process
1745	whatsoever.
1746	4.3.  Except as provided in subparagraph 5. 4., a
1747	participant who terminates employment and receives a
1748	distribution, including a rollover or trustee-to-trustee
1749	transfer, funded by employer contributions shall be deemed to be
1750	retired from a state-administered retirement system if the
1751	participant is subsequently employed with an employer that
1752	participates in the Florida Retirement System.
1753	5.4.  A participant who receives optional annuity program
1754	benefits funded by employee and employer contributions as a
1755	mandatory distribution of a de minimis account authorized by the
1756	department is not considered a retiree.
1757
1758	As used in this paragraph, a "de minimis account" means an
1759	account with a provider company containing employee and employer
1760	contributions and accumulated earnings of not more than $5,000
1761	made under this chapter.
1762	Section 11.  Subsections (2) and (5) and paragraph (c) of
1763	subsection (6) of section 121.071, Florida Statutes, are
1764	amended, present paragraph (d) of subsection (6) is redesignated
1765	as paragraph (e), and a new paragraph (d) is added to that
1766	subsection, to read:
1767	121.071  Contributions.-Contributions to the system shall
1768	be made as follows:
1769	(2)(a)  Effective January 1, 1975, or October 1, 1975, as
1770	applicable, and through June 30, 2011, each employer shall
1771	accomplish the contribution required by subsection (1) by a
1772	procedure in which no employee's gross salary shall be reduced.
1773	Effective July 1, 2011, each employee and employer shall pay
1774	retirement contributions as specified in s. 121.71.
1775	(b)  Upon termination of employment from all participating
1776	employers for 3 calendar months for any reason other than
1777	retirement pursuant to s. 121.021(39)(c), a member may receive
1778	shall be entitled to a full refund of all the contributions he
1779	or she has made to the pension prior or subsequent to
1780	participation in the noncontributory plan, subject to the
1781	restrictions otherwise provided in this chapter. Partial refunds
1782	are not permitted. The refund shall not include any interest
1783	earnings on the contributions for a member of the pension plan.
1784	Employer contributions made on behalf of the member are not
1785	refundable. A member may not receive a refund of employee
1786	contributions if a pending or an approved qualified domestic
1787	relations order is filed against his or her retirement account.
1788	By obtaining a refund of contributions, a member waives all
1789	rights under the Florida Retirement System and the health
1790	insurance subsidy to the service credit represented by the
1791	refunded contributions, except the right to purchase his or her
1792	prior service credit in accordance with s. 121.081(2).
1793	(5)  Contributions made in accordance with subsections (1),
1794	(2), (3), and (4), and s. 121.71 shall be paid by the employer
1795	into the system trust funds in accordance with rules adopted by
1796	the administrator pursuant to chapter 120, except as may be
1797	otherwise specified herein. Effective July 1, 2002,
1798	contributions paid under subsections (1) and (4) and
1799	accompanying payroll data are due and payable no later than the
1800	5th working day of the month immediately following the month
1801	during which the payroll period ended.
1802	(6)
1803	(c)  By obtaining a refund of contributions, a member
1804	waives all rights under the Florida Retirement System and the
1805	health insurance subsidy as provided in s. 112.363 to the
1806	service credit represented by the refunded contributions, except
1807	the right to purchase his or her prior service credit in
1808	accordance with s. 121.081(2).
1809	(d)  If a member or former member of the pension plan
1810	receives an invalid refund from the Florida Retirement System
1811	Trust Fund, such person must repay the full amount of the
1812	invalid refund, plus interest at 6.5 percent compounded annually
1813	on each June 30 from the date of refund until full payment is
1814	made to the trust fund. The invalid refund must be repaid before
1815	the member retires or, if applicable, transfers to the
1816	investment plan.
1817	Section 12.  Paragraphs (b) and (c) of subsection (1) and
1818	subsection (2) of section 121.081, Florida Statutes, are amended
1819	to read:
1820	121.081  Past service; prior service; contributions.-
1821	Conditions under which past service or prior service may be
1822	claimed and credited are:
1823	(1)
1824	(b)  Past service earned after January 1, 1975, may be
1825	claimed by officers or employees of a municipality, metropolitan
1826	planning organization, charter school, charter technical career
1827	center, or special district who become a covered group under
1828	this system. The governing body of a covered group may elect to
1829	provide benefits for past service earned after January 1, 1975,
1830	in accordance with this chapter, and the cost for such past
1831	service is established by applying the following formula: The
1832	employer shall contribute an amount equal to the employer
1833	contribution rate in effect at the time the service was earned
1834	and, if applicable, the employee contribution rate, multiplied
1835	by the employee's gross salary for each year of past service
1836	claimed, plus 6.5-percent interest thereon, compounded annually,
1837	figured on each year of past service, with interest compounded
1838	from date of annual salary earned until date of payment.
1839	(c)  If an employer joins the Florida Retirement System
1840	prior to July 1, 2011, and does Should the employer not elect to
1841	provide past service for the member at the time of joining, then
1842	the member may claim and pay for the service as provided in
1843	same, based on paragraphs (a) and (b).
1844	(2)  Prior service, as defined in s. 121.021(19), may be
1845	claimed as creditable service under the Florida Retirement
1846	System after a member has been reemployed for 1 complete year of
1847	creditable service within a period of 12 consecutive months,
1848	except as provided in paragraph (c). Service performed as a
1849	participant of the optional retirement program for the State
1850	University System under s. 121.35 or the Senior Management
1851	Service Optional Annuity Program under s. 121.055 may be used to
1852	satisfy the reemployment requirement of 1 complete year of
1853	creditable service. The member shall not be permitted to make
1854	any contributions for prior service until after completion of
1855	the 1 year of creditable service. If a member does not wish to
1856	claim credit for all of his or her prior service, the service
1857	the member claims must be the most recent period of service. The
1858	required contributions for claiming the various types of prior
1859	service are:
1860	(a)  For prior service performed prior to the date the
1861	system becomes noncontributory for the member and for which the
1862	member had credit under one of the existing retirement systems
1863	and received a refund of contributions upon termination of
1864	employment, the member shall contribute 4 percent of all salary
1865	received during the period being claimed, plus 4-percent
1866	interest compounded annually from date of refund until July 1,
1867	1975, and 6.5-percent interest compounded annually thereafter,
1868	until full payment is made to the Retirement Trust Fund, and
1869	shall receive credit in the Regular Class. A member who elected
1870	to transfer to the Florida Retirement System from an existing
1871	system may receive credit for prior service under the existing
1872	system if he or she was eligible under the existing system to
1873	claim the prior service at the time of the transfer.
1874	Contributions for such prior service shall be determined by the
1875	applicable provisions of the system under which the prior
1876	service is claimed and shall be paid by the member, with
1877	matching contributions paid by the employer at the time the
1878	service was performed. Effective July 1, 1978, the account of a
1879	person who terminated under s. 238.05(3) may not be charged
1880	interest for contributions that remained on deposit in the
1881	Annuity Savings Trust Fund established under chapter 238, upon
1882	retirement under this chapter or chapter 238.
1883	(b)  For prior service performed prior to the date the
1884	system becomes noncontributory for the member and for which the
1885	member had credit under the Florida Retirement System and
1886	received a refund of contributions upon termination of
1887	employment, the member shall contribute at the rate that was
1888	required of him or her during the period of service being
1889	claimed, on all salary received during such period, plus 4-
1890	percent interest compounded annually from date of refund until
1891	July 1, 1975, and 6.5-percent interest compounded annually
1892	thereafter, until the full payment is made to the Retirement
1893	Trust Fund, and shall receive credit in the membership class in
1894	which the member participated during the period claimed.
1895	(c)  For prior service as defined in s. 121.021(19)(b) and
1896	(c) during which no contributions were made because the member
1897	did not participate in a retirement system, the member shall
1898	contribute 14.38 percent of all salary received during such
1899	period or 14.38 percent of $100 per month during such period,
1900	whichever is greater, plus 4-percent interest compounded
1901	annually from the first year of service claimed until July 1,
1902	1975, and 6.5-percent interest compounded annually thereafter,
1903	until full payment is made to the Retirement Trust Fund, and
1904	shall receive credit in the Regular Class.
1905	(d)  In order to claim credit for prior service as defined
1906	in s. 121.021(19)(d) for which no retirement contributions were
1907	paid during the period of such service, the member shall
1908	contribute the total employee and employer contributions which
1909	were required to be made to the Highway Patrol Pension Trust
1910	Fund, as provided in chapter 321, during the period claimed,
1911	plus 4-percent interest compounded annually from the first year
1912	of service until July 1, 1975, and 6.5-percent interest
1913	compounded annually thereafter, until full payment is made to
1914	the Retirement Trust Fund. However, any governmental entity that
1915	which employed such member may elect to pay up to 50 percent of
1916	the contributions and interest required to purchase the this
1917	prior service credit. The service shall be credited in
1918	accordance with the provisions of the Highway Patrol Pension
1919	Plan in effect during the period claimed unless the member
1920	terminated and withdrew his or her retirement contributions and
1921	was thereafter enrolled in the State and County Officers and
1922	Employees' Retirement System or the Florida Retirement System,
1923	in which case the service shall be credited as Regular Class
1924	service.
1925	(e)  For service performed under the Florida Retirement
1926	System after December 1, 1970, that was never reported to the
1927	division or the department due to error, retirement credit may
1928	be claimed by a member of the Florida Retirement System. The
1929	department shall adopt rules establishing criteria for claiming
1930	such credit and detailing the documentation required to
1931	substantiate the error.
1932	(f)  For prior service performed on or after July 1, 2011,
1933	for which the member had credit under the Florida Retirement
1934	System and received a refund of contributions upon termination
1935	of employment for 3 calendar months, the member shall contribute
1936	at the rate that was required of him or her during the period of
1937	service being claimed, plus 6.5 percent interest, compounded
1938	annually on each June 30 from date of refund until the full
1939	payment is made to the Florida Retirement System Trust Fund, and
1940	shall receive credit in the membership class in which the member
1941	participated during the period claimed.
1942	(g)(f)  The employer may not be required to make
1943	contributions for prior service credit for any member, except
1944	that the employer shall pay the employer portion of
1945	contributions for any legislator who elects to withdraw from the
1946	Florida Retirement System and later rejoins the system and pays
1947	any employee contributions required in accordance with s.
1948	121.052(3)(d).
1949	Section 13.  Subsection (1), paragraph (j) of subsection
1950	(4), paragraphs (a) and (c) of subsection (5), paragraph (d) of
1951	subsection (9), and paragraph (a) of subsection (13) of section
1952	121.091, Florida Statutes, are amended, and paragraph (l) is
1953	added to subsection (13) of that section, to read:
1954	121.091  Benefits payable under the system.-Benefits may
1955	not be paid under this section unless the member has terminated
1956	employment as provided in s. 121.021(39)(a) or begun
1957	participation in the Deferred Retirement Option Program as
1958	provided in subsection (13), and a proper application has been
1959	filed in the manner prescribed by the department. The department
1960	may cancel an application for retirement benefits when the
1961	member or beneficiary fails to timely provide the information
1962	and documents required by this chapter and the department's
1963	rules. The department shall adopt rules establishing procedures
1964	for application for retirement benefits and for the cancellation
1965	of such application when the required information or documents
1966	are not received.
1967	(1)  NORMAL RETIREMENT BENEFIT.-Upon attaining his or her
1968	normal retirement date, the member, upon application to the
1969	administrator, shall receive a monthly benefit which shall begin
1970	to accrue on the first day of the month of retirement and be
1971	payable on the last day of that month and each month thereafter
1972	during his or her lifetime. The normal retirement benefit,
1973	including any past or additional retirement credit, may not
1974	exceed 100 percent of the average final compensation. The amount
1975	of monthly benefit shall be calculated as the product of A and
1976	B, subject to the adjustment of C, if applicable, as set forth
1977	below:
1978	(a)1.  For creditable years of Regular Class service, A is
1979	1.60 percent of the member's average final compensation, up to
1980	the member's normal retirement date. Upon completion of the
1981	first year after the normal retirement date, A is 1.63 percent
1982	of the member's average final compensation. Following the second
1983	year after the normal retirement date, A is 1.65 percent of the
1984	member's average final compensation. Following the third year
1985	after the normal retirement date, and for subsequent years, A is
1986	1.68 percent of the member's average final compensation.
1987	2.  For creditable years of special risk service, A is:
1988	a.  Two percent of the member's average final compensation
1989	for all creditable years prior to October 1, 1974.;
1990	b.  Three percent of the member's average final
1991	compensation for all creditable years after September 30, 1974,
1992	and before October 1, 1978.;
1993	c.  Two percent of the member's average final compensation
1994	for all creditable years after September 30, 1978, and before
1995	January 1, 1989.;
1996	d.  Two and two-tenths percent of the member's final
1997	monthly compensation for all creditable years after December 31,
1998	1988, and before January 1, 1990.;
1999	e.  Two and four-tenths percent of the member's average
2000	final compensation for all creditable years after December 31,
2001	1989, and before January 1, 1991.;
2002	f.  Two and six-tenths percent of the member's average
2003	final compensation for all creditable years after December 31,
2004	1990, and before January 1, 1992.;
2005	g.  Two and eight-tenths percent of the member's average
2006	final compensation for all creditable years after December 31,
2007	1991, and before January 1, 1993.;
2008	h.  Three percent of the member's average final
2009	compensation for all creditable years after December 31, 1992.;
2010	and
2011	i.  Three percent of the member's average final
2012	compensation for all creditable years of service after September
2013	30, 1978, and before January 1, 1993, for any special risk
2014	member who retires after July 1, 2000, or any member of the
2015	Special Risk Administrative Support Class entitled to retain the
2016	special risk normal retirement date who was a member of the
2017	Special Risk Class during the time period and who retires after
2018	July 1, 2000.
2019	3.a.  For creditable years of Senior Management Service
2020	Class service after January 31, 1987, and before July 1, 2011, A
2021	is 2 percent.
2022	b.  For creditable years of Senior Management Service Class
2023	service after June 30, 2011, A is equal to the percentage
2024	provided in subparagraph 1. of the member's average final
2025	compensation.;
2026	4.a.  For creditable years of Elected Officers' Class
2027	service before July 1, 2011, as a Supreme Court Justice,
2028	district court of appeal judge, circuit judge, or county court
2029	judge, A is 3 1/3 percent of the member's average final
2030	compensation, and for all other creditable service before July
2031	1, 2011, in such class, A is 3 percent of average final
2032	compensation.
2033	b.  For creditable years of Elected Officers' Class service
2034	after June 30, 2011, A is equal to the percentage provided in
2035	subparagraph 1. of the member's average final compensation.;
2036	(b)  B is the number of the member's years and any
2037	fractional part of a year of creditable service earned
2038	subsequent to November 30, 1970.; and
2039	(c)  C is the normal retirement benefit credit brought
2040	forward as of November 30, 1970, by a former member of an
2041	existing system. Such normal retirement benefit credit shall be
2042	determined as the product of X and Y when X is the percentage of
2043	average final compensation which the member would have been
2044	eligible to receive if the member had attained his or her normal
2045	retirement date as of November 30, 1970, all in accordance with
2046	the existing system under which the member is covered on
2047	November 30, 1970, and Y is average final compensation as
2048	defined in s. 121.021(24). However, any member of an existing
2049	retirement system who is eligible to retire and who does retire,
2050	become disabled, or die prior to April 15, 1971, may have his or
2051	her retirement benefits calculated on the basis of the best 5 of
2052	the last 10 years of service.
2053	(d)  A member's average final compensation shall be
2054	determined by formula to obtain the coverage for the 5 highest
2055	fiscal years' salaries, calculated as provided by rule.
2056	(4)  DISABILITY RETIREMENT BENEFIT.-
2057	(j)  Disability retirement of justice or judge by order of
2058	Supreme Court.-
2059	1.a.  If a member is a justice of the Supreme Court, judge
2060	of a district court of appeal, circuit judge, or judge of a
2061	county court who has served for 6 years or more as an elected
2062	constitutional judicial officer, including service as a judicial
2063	officer in any court abolished pursuant to Art. V of the State
2064	Constitution, and who is retired for disability by order of the
2065	Supreme Court upon recommendation of the Judicial Qualifications
2066	Commission pursuant to the provisions of Art. V of the State
2067	Constitution, the member's Option 1 monthly benefit as provided
2068	in subparagraph (6)(a)1. may shall not be less than two-thirds
2069	of his or her monthly compensation as of the member's disability
2070	retirement date. Such a member may alternatively elect to
2071	receive a disability retirement benefit under any other option
2072	as provided in paragraph (6)(a). This sub-subparagraph applies
2073	to any member retiring prior to July 1, 2011.
2074	b.  Effective July 1, 2011, and applicable to any member
2075	retiring on or after July 1, 2011, if a member is a justice of
2076	the Supreme Court, judge of a district court of appeal, circuit
2077	judge, or judge of a county court who has served for 6 years or
2078	more as an elected constitutional judicial officer, including
2079	service as a judicial officer in any court abolished pursuant to
2080	Art. V of the State Constitution, and who is retired for
2081	disability by order of the Supreme Court upon recommendation of
2082	the Judicial Qualifications Commission pursuant to the
2083	provisions of Art. V of the State Constitution, the member's
2084	Option 1 monthly benefit as provided in subparagraph (6)(a)1.
2085	may not be less than one-third of his or her monthly
2086	compensation as of the member's disability retirement date. Such
2087	a member may alternatively elect to receive a disability
2088	retirement benefit under any other option as provided in
2089	paragraph (6)(a).
2090	2.  Should any justice or judge who is a member of the
2091	Florida Retirement System be retired for disability by order of
2092	the Supreme Court upon recommendation of the Judicial
2093	Qualifications Commission pursuant to the provisions of Art. V
2094	of the State Constitution, then all contributions to his or her
2095	account and all contributions made on his or her behalf by the
2096	employer shall be transferred to and deposited in the General
2097	Revenue Fund of the state, and there is hereby appropriated
2098	annually out of the General Revenue Fund, to be paid into the
2099	Florida Retirement System Fund, an amount necessary to pay the
2100	benefits of all justices and judges retired from the Florida
2101	Retirement System pursuant to Art. V of the State Constitution.
2102	(5)  TERMINATION BENEFITS.-A member whose employment is
2103	terminated prior to retirement retains membership rights to
2104	previously earned member-noncontributory service credit, and to
2105	member-contributory service credit, if the member leaves the
2106	member contributions on deposit in his or her retirement
2107	account. If a terminated member receives a refund of member
2108	contributions, such member may reinstate membership rights to
2109	the previously earned service credit represented by the refund
2110	by completing 1 year of creditable service and repaying the
2111	refunded member contributions, plus interest.
2112	(a)  A member whose employment is terminated for any reason
2113	other than death or retirement prior to becoming vested is
2114	entitled to the return of his or her accumulated contributions
2115	as of the date of termination. Effective July 1, 2011, upon
2116	termination of employment from all participating employers for 3
2117	calendar months for any reason other than retirement pursuant to
2118	s. 121.021(39)(c), a member may receive a refund of all
2119	contributions he or she has made to the pension plan, subject to
2120	the restrictions otherwise provided in this chapter. Partial
2121	refunds are not permitted. The refund shall not include any
2122	interest earnings on the contributions for a member of the
2123	pension plan. Employer contributions made on behalf of the
2124	member are not refundable. A member may not receive a refund of
2125	employee contributions if a pending or an approved qualified
2126	domestic relations order is filed against his or her retirement
2127	account. By obtaining a refund of contributions, a member waives
2128	all rights under the Florida Retirement System and the health
2129	insurance subsidy to the service credit represented by the
2130	refunded contributions, except the right to purchase his or her
2131	prior service credit in accordance with s. 121.081(2).
2132	(c)  In lieu of the deferred monthly benefit provided in
2133	paragraph (b), the terminated member may elect to receive a
2134	lump-sum amount equal to his or her accumulated contributions as
2135	of the date of termination. Effective July 1, 2011, upon
2136	termination of employment from all participating employers for 3
2137	calendar months for any reason other than retirement pursuant to
2138	s. 121.021(39)(c), a member may receive a refund of all
2139	contributions he or she has made to the pension plan, subject to
2140	the restrictions otherwise provided in this chapter. Partial
2141	refunds are not permitted. The refund shall not include any
2142	interest earnings on the contributions for a member of the
2143	pension plan. Employer contributions made on behalf of the
2144	member are not refundable. A member may not receive a refund of
2145	employee contributions if a pending or an approved qualified
2146	domestic relations order is filed against his or her retirement
2147	account. By obtaining a refund of contributions, a member waives
2148	all rights under the Florida Retirement System and the health
2149	insurance subsidy to the service credit represented by the
2150	refunded contributions, except the right to purchase his or her
2151	prior service credit in accordance with s. 121.081(2).
2152	(9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.-
2153	(d)  The provisions of this subsection apply to retirees,
2154	as defined in s. 121.4501(2), of the investment plan Public
2155	Employee Optional Retirement Program, subject to the following
2156	conditions:
2157	1.  A retiree The retirees may not be reemployed with an
2158	employer participating in the Florida Retirement System until
2159	such person has been retired for 6 calendar months.
2160	2.  A retiree employed in violation of this subsection and
2161	an employer that employs or appoints such person are jointly and
2162	severally liable for reimbursement of any benefits paid to the
2163	retirement trust fund from which the benefits were paid,
2164	including the Florida Retirement System Trust Fund and the
2165	Florida Retirement System Investment Plan Public Employee
2166	Optional Retirement Program Trust Fund, as appropriate. The
2167	employer must have a written statement from the retiree that he
2168	or she is not retired from a state-administered retirement
2169	system.
2170	(13)  DEFERRED RETIREMENT OPTION PROGRAM.-In general, and
2171	subject to this section, the Deferred Retirement Option Program,
2172	hereinafter referred to as DROP, is a program under which an
2173	eligible member of the Florida Retirement System may elect to
2174	participate, deferring receipt of retirement benefits while
2175	continuing employment with his or her Florida Retirement System
2176	employer. The deferred monthly benefits shall accrue in the
2177	Florida Retirement System on behalf of the participant, plus
2178	interest compounded monthly, for the specified period of the
2179	DROP participation, as provided in paragraph (c). Upon
2180	termination of employment, the participant shall receive the
2181	total DROP benefits and begin to receive the previously
2182	determined normal retirement benefits. Participation in the DROP
2183	does not guarantee employment for the specified period of DROP.
2184	Participation in DROP by an eligible member beyond the initial
2185	60-month period as authorized in this subsection shall be on an
2186	annual contractual basis for all participants.
2187	(a)  Eligibility of member to participate in DROP.-All
2188	active Florida Retirement System members in a regularly
2189	established position, and all active members of the Teachers'
2190	Retirement System established in chapter 238 or the State and
2191	County Officers' and Employees' Retirement System established in
2192	chapter 122, which are consolidated within the Florida
2193	Retirement System under s. 121.011, are eligible to elect
2194	participation in DROP if:
2195	1.  The member is not a renewed member under s. 121.122 or
2196	a member of the State Community College System Optional
2197	Retirement Program under s. 121.051, the Senior Management
2198	Service Optional Annuity Program under s. 121.055, or the
2199	optional retirement program for the State University System
2200	under s. 121.35.
2201	2.  Except as provided in subparagraph 6., election to
2202	participate is made within 12 months immediately following the
2203	date on which the member first reaches normal retirement date,
2204	or, for a member who reaches normal retirement date based on
2205	service before he or she reaches age 62, or age 55 for Special
2206	Risk Class members, election to participate may be deferred to
2207	the 12 months immediately following the date the member attains
2208	age 57, or age 52 for Special Risk Class members. A member who
2209	delays DROP participation during the 12-month period immediately
2210	following his or her maximum DROP deferral date, except as
2211	provided in subparagraph 6., loses a month of DROP participation
2212	for each month delayed. A member who fails to make an election
2213	within the 12-month limitation period forfeits all rights to
2214	participate in DROP. The member shall advise his or her employer
2215	and the division in writing of the date DROP begins. The
2216	beginning date may be subsequent to the 12-month election period
2217	but must be within the original 60-month participation period
2218	provided in subparagraph (b)1. When establishing eligibility of
2219	the member to participate in DROP, the member may elect to
2220	include or exclude any optional service credit purchased by the
2221	member from the total service used to establish the normal
2222	retirement date. A member who has dual normal retirement dates
2223	is eligible to elect to participate in DROP after attaining
2224	normal retirement date in either class.
2225	3.  The employer of a member electing to participate in
2226	DROP, or employers if dually employed, shall acknowledge in
2227	writing to the division the date the member's participation in
2228	DROP begins and the date the member's employment and DROP
2229	participation will terminate.
2230	4.  Simultaneous employment of a participant by additional
2231	Florida Retirement System employers subsequent to the
2232	commencement of participation in DROP is permissible if such
2233	employers acknowledge in writing a DROP termination date no
2234	later than the participant's existing termination date or the
2235	maximum participation period provided in subparagraph (b)1.
2236	5.  A DROP participant may change employers while
2237	participating in DROP, subject to the following:
2238	a.  A change of employment must take place without a break
2239	in service so that the member receives salary for each month of
2240	continuous DROP participation. If a member receives no salary
2241	during a month, DROP participation shall cease unless the
2242	employer verifies a continuation of the employment relationship
2243	for such participant pursuant to s. 121.021(39)(b).
2244	b.  Such participant and new employer shall notify the
2245	division of the identity of the new employer on forms required
2246	by the division.
2247	c.  The new employer shall acknowledge, in writing, the
2248	participant's DROP termination date, which may be extended but
2249	not beyond the maximum participation period provided in
2250	subparagraph (b)1., shall acknowledge liability for any
2251	additional retirement contributions and interest required if the
2252	participant fails to timely terminate employment, and is subject
2253	to the adjustment required in sub-subparagraph (c)5.d.
2254	6.  Effective July 1, 2001, for instructional personnel as
2255	defined in s. 1012.01(2), election to participate in DROP may be
2256	made at any time following the date on which the member first
2257	reaches normal retirement date. The member shall advise his or
2258	her employer and the division in writing of the date on which
2259	DROP begins. When establishing eligibility of the member to
2260	participate in DROP for the 60-month participation period
2261	provided in subparagraph (b)1., the member may elect to include
2262	or exclude any optional service credit purchased by the member
2263	from the total service used to establish the normal retirement
2264	date. A member who has dual normal retirement dates is eligible
2265	to elect to participate in either class.
2266	7.  The effective date of DROP participation of a DROP
2267	participant is prior to July 1, 2011.
2268	(l)  Closure of program to new participants.-Effective July
2269	1, 2011, DROP is closed to new participants. Only members whose
2270	DROP effective date is prior to July 1, 2011, may participate in
2271	DROP.
2272	Section 14.  Section 121.101, Florida Statutes, is amended
2273	to read:
2274	121.101  Cost-of-living adjustment of benefits.-
2275	(1)  The purpose of this section is to provide cost-of-
2276	living adjustments to the monthly benefits payable to all
2277	retired members of state-supported retirement systems.
2278	(2)  As used in this section, "initial benefit" means the
2279	first monthly benefit payable to a retiree or beneficiary in
2280	accordance with the laws governing the determination of such
2281	benefit at the time of retirement or earlier death.
2282	(3)  Commencing July 1, 1987, the benefit of each retiree
2283	and annuitant retiring prior to July 1, 2011, shall be adjusted
2284	on each July 1 thereafter, as follows:
2285	(a)  For those retirees and annuitants who have never
2286	received a cost-of-living adjustment under this subsection
2287	section, the amount of the monthly benefit payable for the 12-
2288	month period commencing on the adjustment date shall be the
2289	amount of the member's initial benefit plus an amount equal to a
2290	percentage of the member's initial benefit; this percentage is
2291	derived by dividing the number of months the member has received
2292	an initial benefit by 12, and multiplying the result by 3.
2293	(b)  For those retirees and annuitants who have received a
2294	cost-of-living adjustment under this subsection section, the
2295	adjusted monthly benefit shall be the amount of the monthly
2296	benefit being received on June 30 immediately preceding the
2297	adjustment date plus an amount equal to 3 percent of this
2298	benefit.
2299	(4)  For members retiring effective on or after July 1,
2300	2011, the benefit of each retiree and annuitant shall be
2301	adjusted on each July 1 thereafter, as follows:
2302	(a)  For those retirees and annuitants who have never
2303	received a cost-of-living adjustment under this subsection, the
2304	amount of the monthly benefit payable for the 12-month period
2305	commencing on the adjustment date shall be the amount of the
2306	member's initial benefit plus an amount equal to a percentage of
2307	the member's initial benefit. This percentage is derived by
2308	dividing the number of months the member has received an initial
2309	benefit by 12, and multiplying the result by the factor
2310	calculated pursuant to paragraph (c).
2311	(b)  For those retirees and annuitants who have received a
2312	cost-of-living adjustment under this subsection, the adjusted
2313	monthly benefit shall be the amount of the monthly benefit being
2314	received on June 30 immediately preceding the adjustment date
2315	plus an amount determined by multiplying the benefit by the
2316	factor calculated pursuant to paragraph (c).
2317	(c)  The department shall calculate a cost-of-living factor
2318	for each retiree and beneficiary retiring after June 30, 2011.
2319	This factor equals the product of 3 percent multiplied by the
2320	quotient of the sum of the member's service credit earned for
2321	service prior to July 1, 2011, divided by the sum of the
2322	member's total service credit earned.
2323	(5)(4)  In no event shall a retiree's or annuitant's
2324	monthly retirement benefit be reduced, by the application of
2325	this section, below the benefit he or she was receiving as of
2326	July 1, 1970, or at the date of retirement, if later, nor shall
2327	the benefit be reduced below the minimum monthly benefit
2328	provided him or her under s. 112.362.
2329	(6)(5)  The initial benefit of a retiree who elected an
2330	optional form of benefit payment which provided for a percentage
2331	of the benefit to be continued to a beneficiary after his or her
2332	death shall be reduced at the death of the retiree by
2333	application of the stated percentage.
2334	(7)(6)  The funds necessary to pay for the cost-of-living
2335	adjustment provided by this section are hereby annually
2336	appropriated from the System Trust Fund.
2337	(8)(7)  The purpose of this subsection is to establish a
2338	supplemental cost-of-living adjustment for certain retirees and
2339	beneficiaries who receive monthly retirement benefits under the
2340	provisions of this chapter and the existing systems consolidated
2341	therein, s. 112.05 for certain state officers and employees, and
2342	s. 238.171 for certain elderly incapacitated teachers.
2343	(a)  On July 1, 1996, each such retiree retiring prior to
2344	July 1, 1976, and each annuitant of such a retiree, who had 25
2345	or more years of service, who is neither receiving nor eligible
2346	to receive social security benefits, and whose monthly benefit
2347	as of July 1, 1996, is less than $1,000, shall, upon application
2348	to the administrator, receive a supplemental cost-of-living
2349	adjustment. Such supplemental cost-of-living adjustment shall be
2350	applied by adjusting the retiree's or annuitant's monthly
2351	benefit to an amount equal to the sum of the monthly benefit
2352	being received on July 1, 1996, plus a percentage of the July 1,
2353	1996, benefit. This percentage shall equal the product of 1
2354	percent multiplied by the number of complete years that have
2355	elapsed between the member's date of retirement and July 1,
2356	1996. However, if the supplemental cost-of-living adjustment
2357	plus the July 1, 1996, monthly benefit would exceed $1,000, the
2358	adjustment shall be reduced to an amount which would result in a
2359	monthly benefit equal to $1,000.
2360	(b)  Application for the supplemental cost-of-living
2361	adjustment provided by this subsection shall include
2362	certification by the retiree or annuitant that he or she is not
2363	receiving, and is not eligible to receive, social security
2364	benefits and shall include written authorization for the
2365	department to have access to information from the Social
2366	Security Administration concerning his or her entitlement to, or
2367	eligibility for, social security benefits. Such supplemental
2368	cost-of-living adjustment shall not be paid unless and until the
2369	application requirements of this paragraph are met.
2370	Section 15.  Subsection (1) of section 121.121, Florida
2371	Statutes, is amended to read:
2372	121.121  Authorized leaves of absence.-
2373	(1)  A member may purchase creditable service for up to 2
2374	work years of authorized leaves of absence, including any leaves
2375	of absence covered under the Family Medical Leave Act, if:
2376	(a)  The member has completed a minimum of 6 years of
2377	creditable service, excluding periods for which a leave of
2378	absence was authorized;
2379	(b)  The leave of absence is authorized in writing by the
2380	employer of the member and approved by the administrator;
2381	(c)  The member returns to active employment performing
2382	service with a Florida Retirement System employer in a regularly
2383	established position immediately upon termination of the leave
2384	of absence and remains on the employer's payroll for 1 calendar
2385	month, except that a member who retires on disability while on a
2386	medical leave of absence may shall not be required to return to
2387	employment. A member whose work year is less than 12 months and
2388	whose leave of absence terminates between school years is
2389	eligible to receive credit for the leave of absence if as long
2390	as he or she returns to the employment of his or her employer at
2391	the beginning of the next school year and remains on the
2392	employer's payroll for 1 calendar month; and
2393	(d)  The member makes the required contributions for
2394	service credit during the leave of absence, which shall be 8
2395	percent until January 1, 1975, and 9 percent thereafter of his
2396	or her rate of monthly compensation in effect immediately prior
2397	to the commencement of such leave for each month of such period,
2398	plus 4 percent interest until July 1, 1975, and 6.5 percent
2399	interest thereafter on such contributions, compounded annually
2400	each June 30 from the due date of the contribution to date of
2401	payment. Effective July 1, 1980, any leave of absence purchased
2402	pursuant to this section shall be at the contribution rates
2403	specified in s. 121.071 or s. 121.71 in effect at the time the
2404	leave is granted for the class of membership from which the
2405	leave of absence was granted; however, any member who purchased
2406	leave-of-absence credit prior to July 1, 1980, for a leave of
2407	absence from a position in a class other than the regular
2408	membership class, may pay the appropriate additional
2409	contributions plus compound interest thereon and receive
2410	creditable service for such leave of absence in the membership
2411	class from which the member was granted the leave of absence.
2412
2413	Effective July 1, 2011, any leave of absence purchased by the
2414	member pursuant to this section shall be at the employee and
2415	employer contribution rates specified in s. 121.71 in effect
2416	during the leave for the class of membership from which the
2417	leave of absence was granted.
2418	Section 16.  Section 121.125, Florida Statutes, is amended
2419	to read:
2420	121.125  Credit for workers' compensation payment periods.-
2421	A member of the retirement system created by this chapter who
2422	has been eligible or becomes eligible to receive workers'
2423	compensation payments for an injury or illness occurring during
2424	his or her employment while a member of any state retirement
2425	system shall, upon return to active employment with a covered
2426	employer for 1 calendar month or upon approval for disability
2427	retirement in accordance with s. 121.091(4), receive full
2428	retirement credit for the period prior to such return to active
2429	employment or disability retirement for which the workers'
2430	compensation payments were received. However, a no member may
2431	not receive retirement credit for any such period occurring
2432	after the earlier of the date of maximum medical improvement as
2433	defined in s. 440.02 or the date termination has occurred as
2434	defined in s. 121.021(39). The employer of record at the time of
2435	the worker's compensation injury or illness shall make the
2436	required employee and employer retirement contributions based on
2437	the member's rate of monthly compensation immediately prior to
2438	his or her receiving workers' compensation payments for
2439	retirement credit received by the member. The employer of record
2440	at the time of the workers' compensation injury or illness shall
2441	be assessed by the division a penalty of 1 percent of the
2442	contributions on all contributions not paid on the first payroll
2443	report after the member becomes eligible to receive credit. This
2444	delinquent assessment may not be waived.
2445	Section 17.  Section 121.161, Florida Statutes, is
2446	reenacted to read:
2447	121.161  References to other laws include amendments.-
2448	References in this chapter to state or federal laws or
2449	agreements are intended to include such laws as they now exist
2450	or may hereafter be amended.
2451	Section 18.  Paragraphs (g) and (i) of subsection (3),
2452	paragraph (a) of subsection (4), and subsection (5) of section
2453	121.35, Florida Statutes, are amended to read:
2454	121.35  Optional retirement program for the State
2455	University System.-
2456	(3)  ELECTION OF OPTIONAL PROGRAM.-
2457	(g)  An eligible employee who is a member of the Florida
2458	Retirement System at the time of election to participate in the
2459	optional retirement program shall retain all retirement service
2460	credit earned under the Florida Retirement System, at the rate
2461	earned. No Additional service credit in the Florida Retirement
2462	System may not shall be earned while the employee participates
2463	in the optional program, and nor shall the employee is not be
2464	eligible for disability retirement under the Florida Retirement
2465	System. An eligible employee may transfer from the Florida
2466	Retirement System to his or her accounts under the State
2467	University System Optional Retirement Program a sum representing
2468	the present value of the employee's accumulated benefit
2469	obligation under the defined benefit program of the Florida
2470	Retirement System pension plan for any service credit accrued
2471	from the employee's first eligible transfer date to the optional
2472	retirement program through the actual date of such transfer, if
2473	such service credit was earned in the period from July 1, 1984,
2474	through December 31, 1992. The present value of the employee's
2475	accumulated benefit obligation shall be calculated as described
2476	in s. 121.4501(3)(c)2. Upon such transfer, all such service
2477	credit previously earned under the defined benefit program of
2478	the Florida Retirement System pension plan during this period is
2479	shall be nullified for purposes of entitlement to a future
2480	benefit under the defined benefit program of the Florida
2481	Retirement System pension plan.
2482	(i)  Effective January 1, 2008, through December 31, 2008,
2483	except for an employee who is a mandatory participant of the
2484	State University System Optional Retirement Program, an employee
2485	who has elected to participate in the State University System
2486	Optional Retirement Program shall have one opportunity, at the
2487	employee's discretion, to choose to transfer from this program
2488	to the defined benefit program of the Florida Retirement System
2489	pension plan or to the investment plan Public Employee Optional
2490	Retirement Program, subject to the terms of the applicable
2491	contracts of the State University System Optional Retirement
2492	Program.
2493	1.  If the employee chooses to move to the investment plan
2494	Public Employee Optional Retirement Program, any contributions,
2495	interest, and earnings creditable to the employee under the
2496	State University System Optional Retirement Program must shall
2497	be retained by the employee in the State University System
2498	Optional Retirement Program, and the applicable provisions of s.
2499	121.4501(4) shall govern the election.
2500	2.  If the employee chooses to move to the pension plan
2501	defined benefit program of the Florida Retirement System, the
2502	employee shall receive service credit equal to his or her years
2503	of service under the State University System Optional Retirement
2504	Program.
2505	a.  The cost for such credit must be in shall be an amount
2506	representing the actuarial accrued liability for the affected
2507	period of service. The cost must shall be calculated using the
2508	discount rate and other relevant actuarial assumptions that were
2509	used to value the Florida Retirement System pension defined
2510	benefit plan liabilities in the most recent actuarial valuation.
2511	The calculation must shall include any service already
2512	maintained under the pension defined benefit plan in addition to
2513	the years under the State University System Optional Retirement
2514	Program. The actuarial accrued liability of any service already
2515	maintained under the pension defined benefit plan must shall be
2516	applied as a credit to total cost resulting from the
2517	calculation. The division must shall ensure that the transfer
2518	sum is prepared using a formula and methodology certified by an
2519	enrolled actuary.
2520	b.  The employee must transfer from his or her State
2521	University System Optional Retirement Program account, and from
2522	other employee moneys as necessary, a sum representing the
2523	actuarial accrued liability immediately following the time of
2524	such movement, determined assuming that attained service equals
2525	the sum of service in the pension plan defined benefit program
2526	and service in the State University System Optional Retirement
2527	Program.
2528	(4)  CONTRIBUTIONS.-
2529	(a)  Through June 30, 2001, each employer shall contribute
2530	on behalf of each participant in the optional retirement program
2531	an amount equal to the normal cost portion of the employer
2532	retirement contribution which would be required if the
2533	participant were a regular member of the Florida Retirement
2534	System pension plan defined benefit program, plus the portion of
2535	the contribution rate required in s. 112.363(8) that would
2536	otherwise be assigned to the Retiree Health Insurance Subsidy
2537	Trust Fund. Effective July 1, 2001, each employer shall
2538	contribute on behalf of each participant in the optional program
2539	an amount equal to 10.43 percent of the participant's gross
2540	monthly compensation. The department shall deduct an amount
2541	approved by the Legislature to provide for the administration of
2542	this program. The payment of the contributions to the optional
2543	program which is required by this paragraph for each participant
2544	shall be made by the employer to the department, which shall
2545	forward the contributions to the designated company or companies
2546	contracting for payment of benefits for the participant under
2547	the program. However, such contributions paid on behalf of an
2548	employee described in paragraph (3)(c) shall not be forwarded to
2549	a company and shall not begin to accrue interest until the
2550	employee has executed a contract and notified the department.
2551	(5)  BENEFITS.-
2552	(a)  Benefits are payable under the optional retirement
2553	program only to vested participants in the program, or their
2554	beneficiaries as designated by the participant in the contract
2555	with a provider company, and such benefits shall be paid only by
2556	the designated company in accordance with s. 403(b) of the
2557	Internal Revenue Code and the terms of the annuity contract or
2558	contracts applicable to the participant. Benefits accrue in
2559	individual accounts that are participant-directed, portable, and
2560	funded by employer contributions and the earnings thereon. The
2561	participant must be terminated for 3 calendar months from all
2562	employment relationships with all Florida Retirement System
2563	employers, as provided in s. 121.021(39), to begin receiving the
2564	employer-funded benefit. Benefits funded by employer
2565	contributions are payable in accordance with the following terms
2566	and conditions:
2567	1.  Benefits shall be paid only to a participant, to his or
2568	her beneficiaries, or to his or her estate, as designated by the
2569	participant.
2570	2.  Benefits shall be paid by the provider company or
2571	companies in accordance with the law, the provisions of the
2572	contract, and any applicable department rule or policy.
2573	3.  In the event of a participant's death, moneys
2574	accumulated by, or on behalf of, the participant, less
2575	withholding taxes remitted to the Internal Revenue Service, if
2576	any, shall be distributed to the participant's designated
2577	beneficiary or beneficiaries, or to the participant's estate, as
2578	if the participant retired on the date of death, as provided in
2579	paragraph (d) (c). No other death benefits are available to
2580	survivors of participants under the optional retirement program
2581	except for such benefits, or coverage for such benefits, as are
2582	separately afforded by the employer, at the employer's
2583	discretion.
2584	(b)  Under the optional retirement program, benefits are
2585	not payable for employee hardships, unforeseeable emergencies,
2586	loans, medical expenses, educational expenses, purchase of a
2587	principal residence, payments necessary to prevent eviction or
2588	foreclosure on an employee's principal residence, or any other
2589	reason prior to termination from all employment relationships
2590	with participating employers, as provided in s. 121.021(39).
2591	(c)(b)  Upon receipt by the provider company of a properly
2592	executed application for distribution of benefits, the total
2593	accumulated benefit shall be payable to the participant, as:
2594	1.  A lump-sum distribution to the participant;
2595	2.  A lump-sum direct rollover distribution whereby all
2596	accrued benefits, plus interest and investment earnings, are
2597	paid from the participant's account directly to an eligible
2598	retirement plan, as defined in s. 402(c)(8)(B) of the Internal
2599	Revenue Code, on behalf of the participant;
2600	3.  Periodic distributions;
2601	4.  A partial lump-sum payment whereby a portion of the
2602	accrued benefit is paid to the participant and the remaining
2603	amount is transferred to an eligible retirement plan, as defined
2604	in s. 402(c)(8)(B) of the Internal Revenue Code, on behalf of
2605	the participant; or
2606	5.  Such other distribution options as are provided for in
2607	the participant's optional retirement program contract.
2608	(d)(c)  Survivor benefits shall be payable as:
2609	1.  A lump-sum distribution payable to the beneficiaries or
2610	to the deceased participant's estate;
2611	2.  An eligible rollover distribution on behalf of the
2612	surviving spouse of a deceased participant, whereby all accrued
2613	benefits, plus interest and investment earnings, are paid from
2614	the deceased participant's account directly to an eligible
2615	retirement plan, as described in s. 402(c)(8)(B) of the Internal
2616	Revenue Code, on behalf of the surviving spouse;
2617	3.  Such other distribution options as are provided for in
2618	the participant's optional retirement program contract; or
2619	4.  A partial lump-sum payment whereby a portion of the
2620	accrued benefit is paid to the deceased participant's surviving
2621	spouse or other designated beneficiaries, less withholding taxes
2622	remitted to the Internal Revenue Service, if any, and the
2623	remaining amount is transferred directly to an eligible
2624	retirement plan, as described in s. 402(c)(8)(B) of the Internal
2625	Revenue Code, on behalf of the surviving spouse. The proportions
2626	must be specified by the participant or the surviving
2627	beneficiary.
2628
2629	This paragraph does not abrogate other applicable provisions of
2630	state or federal law providing payment of death benefits.
2631	(e)(d)  The benefits payable to any person under the
2632	optional retirement program, and any contribution accumulated
2633	under such program, shall not be subject to assignment,
2634	execution, or attachment or to any legal process whatsoever.
2635	(f)(e)  A participant who chooses to receive his or her
2636	benefits must be terminated for 3 calendar months to be eligible
2637	to receive benefits funded by employer contributions. A
2638	participant upon termination as defined in s. 121.021 must
2639	notify the provider company of the date he or she wishes
2640	benefits funded by required employee and employer contributions
2641	to begin and must meet termination as defined in s. 121.021
2642	after the initial benefit payment or distribution. Benefits may
2643	be deferred until the participant chooses to make such
2644	application.
2645	(g)(f)  Benefits funded by the participant's voluntary
2646	personal contributions may be paid out at any time and in any
2647	form within the limits provided in the contract between the
2648	participant and his or her provider company. The participant
2649	shall notify the provider company regarding the date and
2650	provisions under which he or she wants to receive the employee-
2651	funded portion of the plan.
2652	(h)(g)  For purposes of this section, "retiree" means a
2653	former participant of the optional retirement program who has
2654	terminated employment and has taken a distribution as provided
2655	in this subsection, except for a mandatory distribution of a de
2656	minimis account authorized by the department.
2657	Section 19.  Section 121.4501, Florida Statutes, is amended
2658	to read:
2659	121.4501  Florida Retirement System Investment Plan Public
2660	Employee Optional Retirement Program.-
2661	(1)  The Trustees of the State Board of Administration
2662	shall establish a an optional defined contribution retirement
2663	program called the "Florida Retirement System Investment Plan"
2664	or "investment plan" for members of the Florida Retirement
2665	System under which retirement benefits will be provided for
2666	eligible employees who elect to participate in the program. The
2667	retirement benefits to be provided for or on behalf of
2668	participants in such optional retirement program shall be
2669	provided through member-directed employee-directed investments,
2670	in accordance with s. 401(a) of the Internal Revenue Code and
2671	its related regulations. The employer and members employers
2672	shall make contributions contribute, as provided in this section
2673	and, ss. 121.571, and 121.71, to the Florida Retirement System
2674	Investment Plan Public Employee Optional Retirement Program
2675	Trust Fund toward the funding of such optional benefits.
2676	(2)  DEFINITIONS.-As used in this part, the term:
2677	(a)  "Approved provider" or "provider" means a private
2678	sector company that is selected and approved by the state board
2679	to offer one or more investment products or services to the
2680	investment plan optional retirement program. The term includes a
2681	bundled provider that offers members participants a range of
2682	individually allocated or unallocated investment products and
2683	may offer a range of administrative and customer services, which
2684	may include accounting and administration of individual member
2685	participant benefits and contributions; individual member
2686	participant recordkeeping; asset purchase, control, and
2687	safekeeping; direct execution of the member's participant's
2688	instructions as to asset and contribution allocation;
2689	calculation of daily net asset values; direct access to member
2690	participant account information; periodic reporting to members
2691	participants, at least quarterly, on account balances and
2692	transactions; guidance, advice, and allocation services directly
2693	relating to the provider's own investment options or products,
2694	but only if the bundled provider complies with the standard of
2695	care of s. 404(a)(1)(A-B) of the Employee Retirement Income
2696	Security Act of 1974 (ERISA), and if providing such guidance,
2697	advice, or allocation services does not constitute a prohibited
2698	transaction under s. 4975(c)(1) of the Internal Revenue Code or
2699	s. 406 of ERISA, notwithstanding that such prohibited
2700	transaction provisions do not apply to the optional retirement
2701	program; a broad array of distribution options; asset
2702	allocation; and retirement counseling and education. Private
2703	sector companies include investment management companies,
2704	insurance companies, depositories, and mutual fund companies.
2705	(b)  "Average monthly compensation" means one-twelfth of
2706	average final compensation as defined in s. 121.021.
2707	(c)  "Covered employment" means employment in a regularly
2708	established position as defined in s. 121.021.
2709	(d)(e)  "Division" means the Division of Retirement within
2710	the department.
2711	(e)(f)  "Electronic means" means by telephone, if the
2712	required information is received on a recorded line, or through
2713	Internet access, if the required information is captured online.
2714	(f)(g)  "Eligible employee" means an officer or employee,
2715	as defined in s. 121.021, who:
2716	1.  Is a member of, or is eligible for membership in, the
2717	Florida Retirement System, including any renewed member of the
2718	Florida Retirement System initially enrolled before July 1,
2719	2010; or
2720	2.  Participates in, or is eligible to participate in, the
2721	Senior Management Service Optional Annuity Program as
2722	established under s. 121.055(6), the State Community College
2723	System Optional Retirement Program as established under s.
2724	121.051(2)(c), or the State University System Optional
2725	Retirement Program established under s. 121.35.
2726
2727	The term does not include any member participating in the
2728	Deferred Retirement Option Program established under s.
2729	121.091(13), a retiree of a state-administered retirement system
2730	initially reemployed on or after July 1, 2010, or a mandatory
2731	participant of the State University System Optional Retirement
2732	Program established under s. 121.35.
2733	(g)(h)  "Employer" means an employer, as defined in s.
2734	121.021, of an eligible employee.
2735	(h)(i)  "Florida Retirement System Investment Plan" or
2736	"investment plan" "Optional retirement program" or "optional
2737	program" means the defined contribution program Public Employee
2738	Optional Retirement Program established under this part.
2739	(i)(d)  "Florida Retirement System Pension Plan" or
2740	"pension plan" means the defined benefit program of the Florida
2741	Retirement System administered under part I of this chapter.
2742	"Defined benefit program" means the defined benefit program of
2743	the Florida Retirement System administered under part I of this
2744	chapter.
2745	(j)  "Participant," "member," or "employee" means an
2746	eligible employee who enrolls in the investment plan optional
2747	program as provided in subsection (4), or a terminated Deferred
2748	Retirement Option Program member participant as described in
2749	subsection (21), or a beneficiary or alternate payee.
2750	(k)  "Participant contributions," "member contributions,"
2751	or "employee contributions" mean the sum of all amounts deducted
2752	from the salary of a member by his or her employer in accordance
2753	with s. 121.71(2) and credited to his or her individual account
2754	in the investment plan, plus any earnings on such amounts and
2755	any contributions specified in paragraph (5)(e).
2756	(l)(k)  "Retiree" means a former member participant of the
2757	investment plan optional retirement program who has terminated
2758	employment and has taken any a distribution of vested employee
2759	or employer contributions as provided in s. 121.591, except for
2760	a mandatory distribution of a de minimis account authorized by
2761	the state board or a minimum required distribution provided by
2762	s. 401(a)(9) of the Internal Revenue Code.
2763	(m)(l)  "Vested" or "vesting" means the guarantee that a
2764	member participant is eligible to receive a retirement benefit
2765	upon completion of the required years of service under the
2766	investment plan optional retirement program.
2767	(3)  ELIGIBILITY; RETIREMENT SERVICE CREDIT; TRANSFER OF
2768	BENEFITS.-
2769	(a)  Participation in the Public Employee Optional
2770	Retirement Program is limited to eligible employees.
2771	Participation in the optional retirement program is in lieu of
2772	participation in the defined benefit program of the Florida
2773	Retirement System.
2774	(a)(b)  An eligible employee who is employed in a regularly
2775	established position by a state employer on June 1, 2002; by a
2776	district school board employer on September 1, 2002; or by a
2777	local employer on December 1, 2002, and who is a member of the
2778	pension plan defined benefit retirement program of the Florida
2779	Retirement System at the time of his or her election to
2780	participate in the investment plan Public Employee Optional
2781	Retirement Program shall retain all retirement service credit
2782	earned under the pension plan defined benefit retirement program
2783	of the Florida Retirement System as credited under the system
2784	and is shall be entitled to a deferred benefit upon termination,
2785	if eligible under the system. However, election to participate
2786	in the investment plan Public Employee Optional Retirement
2787	Program terminates the active membership of the employee in the
2788	pension plan defined benefit program of the Florida Retirement
2789	System, and the service of a member participant in the
2790	investment plan is Public Employee Optional Retirement Program
2791	shall not be creditable under the pension plan defined benefit
2792	retirement program of the Florida Retirement System for purposes
2793	of benefit accrual but is creditable shall be credited for
2794	purposes of vesting.
2795	(b)(c)1.  Notwithstanding paragraph (a), an (b), each
2796	eligible employee who elects to participate in the investment
2797	plan Public Employee Optional Retirement Program and establishes
2798	one or more individual member participant accounts under the
2799	optional program may elect to transfer to the investment plan
2800	optional program a sum representing the present value of the
2801	employee's accumulated benefit obligation under the pension plan
2802	defined benefit retirement program of the Florida Retirement
2803	System. Upon such transfer, all service credit previously earned
2804	under the pension plan is defined benefit program of the Florida
2805	Retirement System shall be nullified for purposes of entitlement
2806	to a future benefit under the pension plan defined benefit
2807	program of the Florida Retirement System. A member may not
2808	transfer participant is precluded from transferring the
2809	accumulated benefit obligation balance from the pension plan
2810	after the time defined benefit program upon the expiration of
2811	the period for enrolling afforded to enroll in the investment
2812	plan has expired optional program.
2813	1.2.  For purposes of this subsection, the present value of
2814	the member's accumulated benefit obligation is based upon the
2815	member's estimated creditable service and estimated average
2816	final compensation under the pension plan defined benefit
2817	program, subject to recomputation under subparagraph 2. 3. For
2818	state employees enrolling under subparagraph (4)(a)1., initial
2819	estimates shall will be based upon creditable service and
2820	average final compensation as of midnight on June 30, 2002; for
2821	district school board employees enrolling under subparagraph
2822	(4)(b)1., initial estimates shall will be based upon creditable
2823	service and average final compensation as of midnight on
2824	September 30, 2002; and for local government employees enrolling
2825	under subparagraph (4)(c)1., initial estimates shall will be
2826	based upon creditable service and average final compensation as
2827	of midnight on December 31, 2002. The dates respectively
2828	specified are above shall be construed as the "estimate date"
2829	for these employees. The actuarial present value of the
2830	employee's accumulated benefit obligation shall be based on the
2831	following:
2832	a.  The discount rate and other relevant actuarial
2833	assumptions used to value the Florida Retirement System Trust
2834	Fund at the time the amount to be transferred is determined,
2835	consistent with the factors provided in sub-subparagraphs b. and
2836	c.
2837	b.  A benefit commencement age, based on the member's
2838	estimated creditable service as of the estimate date. The
2839	benefit commencement age is shall be the younger of the
2840	following, but may shall not be younger than the member's age as
2841	of the estimate date:
2842	(I)  Age 62; or
2843	(II)  The age the member would attain if the member
2844	completed 30 years of service with an employer, assuming the
2845	member worked continuously from the estimate date, and
2846	disregarding any vesting requirement that would otherwise apply
2847	under the pension plan defined benefit program of the Florida
2848	Retirement System.
2849	c.  For members of the Special Risk Class, and for members
2850	of the Special Risk Administrative Support Class entitled to
2851	retain the special risk normal retirement date, the benefit
2852	commencement age is shall be the younger of the following, but
2853	may shall not be younger than the member's age as of the
2854	estimate date:
2855	(I)  Age 55; or
2856	(II)  The age the member would attain if the member
2857	completed 25 years of service with an employer, assuming the
2858	member worked continuously from the estimate date, and
2859	disregarding any vesting requirement that would otherwise apply
2860	under the pension plan defined benefit program of the Florida
2861	Retirement System.
2862	d.  The calculation must shall disregard vesting
2863	requirements and early retirement reduction factors that would
2864	otherwise apply under the pension plan defined benefit
2865	retirement program.
2866	2.3.  For each member participant who elects to transfer
2867	moneys from the pension plan defined benefit program to his or
2868	her account in the investment plan optional program, the
2869	division shall recompute the amount transferred under
2870	subparagraph 1. within 2. not later than 60 days after the
2871	actual transfer of funds based upon the member's participant's
2872	actual creditable service and actual final average compensation
2873	as of the initial date of participation in the investment plan
2874	optional program. If the recomputed amount differs from the
2875	amount transferred under subparagraph 2. by $10 or more, the
2876	division shall:
2877	a.  Transfer, or cause to be transferred, from the Florida
2878	Retirement System Trust Fund to the member's participant's
2879	account in the optional program the excess, if any, of the
2880	recomputed amount over the previously transferred amount
2881	together with interest from the initial date of transfer to the
2882	date of transfer under this subparagraph, based upon the
2883	effective annual interest equal to the assumed return on the
2884	actuarial investment which was used in the most recent actuarial
2885	valuation of the system, compounded annually.
2886	b.  Transfer, or cause to be transferred, from the member's
2887	participant's account to the Florida Retirement System Trust
2888	Fund the excess, if any, of the previously transferred amount
2889	over the recomputed amount, together with interest from the
2890	initial date of transfer to the date of transfer under this
2891	subparagraph, based upon 6 percent effective annual interest,
2892	compounded annually, pro rata based on the member's
2893	participant's allocation plan.
2894	3.  If contribution adjustments are made as a result of
2895	employer errors or corrections, including plan corrections,
2896	following recomputation of the amount transferred under
2897	subparagraph 1., the member is entitled to the additional
2898	contributions or is responsible for returning any excess
2899	contributions resulting from the correction. However, any return
2900	of such erroneous excess pretax contribution by the plan must be
2901	made within the period allowed by the Internal Revenue Service.
2902	The present value of the member's accumulated benefit obligation
2903	shall not be recalculated.
2904	4.  As directed by the member participant, the state board
2905	shall transfer or cause to be transferred the appropriate
2906	amounts to the designated accounts within. The board shall
2907	establish transfer procedures by rule, but the actual transfer
2908	shall not be later than 30 days after the effective date of the
2909	member's participation in the investment plan optional program
2910	unless the major financial markets for securities available for
2911	a transfer are seriously disrupted by an unforeseen event that
2912	which also causes the suspension of trading on any national
2913	securities exchange in the country where the securities were
2914	issued. In that event, the such 30-day period of time may be
2915	extended by a resolution of the state board trustees. Transfers
2916	are not commissionable or subject to other fees and may be in
2917	the form of securities or cash, as determined by the state
2918	board. Such securities are shall be valued as of the date of
2919	receipt in the member's participant's account.
2920	5.  If the state board or the division receives
2921	notification from the United States Internal Revenue Service
2922	that this paragraph or any portion of this paragraph will cause
2923	the retirement system, or a portion thereof, to be disqualified
2924	for tax purposes under the Internal Revenue Code, then the
2925	portion that will cause the disqualification does not apply.
2926	Upon such notice, the state board and the division shall notify
2927	the presiding officers of the Legislature.
2928	(4)  PARTICIPATION; ENROLLMENT.-
2929	(a)1.  With respect to an eligible employee who is employed
2930	in a regularly established position on June 1, 2002, by a state
2931	employer:
2932	a.  Any such employee may elect to participate in the
2933	investment plan Public Employee Optional Retirement Program in
2934	lieu of retaining his or her membership in the pension plan
2935	defined benefit program of the Florida Retirement System. The
2936	election must be made in writing or by electronic means and must
2937	be filed with the third-party administrator by August 31, 2002,
2938	or, in the case of an active employee who is on a leave of
2939	absence on April 1, 2002, by the last business day of the 5th
2940	month following the month the leave of absence concludes. This
2941	election is irrevocable, except as provided in paragraph (g)
2942	(e). Upon making such election, the employee shall be enrolled
2943	as a member participant of the investment plan Public Employee
2944	Optional Retirement Program, the employee's membership in the
2945	Florida Retirement System shall be governed by the provisions of
2946	this part, and the employee's membership in the pension plan
2947	defined benefit program of the Florida Retirement System shall
2948	terminate. The employee's enrollment in the investment plan
2949	Public Employee Optional Retirement Program shall be effective
2950	the first day of the month for which a full month's employer
2951	contribution is made to the investment plan optional program.
2952	b.  Any such employee who fails to elect to participate in
2953	the investment plan Public Employee Optional Retirement Program
2954	within the prescribed time period is deemed to have elected to
2955	retain membership in the pension plan defined benefit program of
2956	the Florida Retirement System, and the employee's option to
2957	elect to participate in the investment plan optional program is
2958	forfeited.
2959	2.  With respect to employees who become eligible to
2960	participate in the investment plan Public Employee Optional
2961	Retirement Program by reason of employment in a regularly
2962	established position with a state employer commencing after
2963	April 1, 2002:
2964	a.  Any such employee shall, by default, be enrolled in the
2965	pension plan defined benefit retirement program of the Florida
2966	Retirement System at the commencement of employment, and may, by
2967	the last business day of the 5th month following the employee's
2968	month of hire, elect to participate in the investment plan
2969	Public Employee Optional Retirement Program. The employee's
2970	election must be made in writing or by electronic means and must
2971	be filed with the third-party administrator. The election to
2972	participate in the investment plan optional program is
2973	irrevocable, except as provided in paragraph (g) (e).
2974	b.  If the employee files such election within the
2975	prescribed time period, enrollment in the investment plan is
2976	optional program shall be effective on the first day of
2977	employment. The employer retirement contributions paid through
2978	the month of the employee plan change shall be transferred to
2979	the investment optional program, and, effective the first day of
2980	the next month, the employer and participant must shall pay the
2981	applicable contributions based on the employee membership class
2982	in the optional program.
2983	c.  An Any such employee who fails to elect to participate
2984	in the investment plan Public Employee Optional Retirement
2985	Program within the prescribed time period is deemed to have
2986	elected to retain membership in the pension plan defined benefit
2987	program of the Florida Retirement System, and the employee's
2988	option to elect to participate in the investment plan optional
2989	program is forfeited.
2990	3.  With respect to employees who become eligible to
2991	participate in the investment plan Public Employee Optional
2992	Retirement Program pursuant to s. 121.051(2)(c)3. or s.
2993	121.35(3)(i), the any such employee may elect to participate in
2994	the investment plan Public Employee Optional Retirement Program
2995	in lieu of retaining his or her membership participation in the
2996	State Community College System Optional Retirement Program or
2997	the State University System Optional Retirement Program. The
2998	election must be made in writing or by electronic means and must
2999	be filed with the third-party administrator. This election is
3000	irrevocable, except as provided in paragraph (g) (e). Upon
3001	making such election, the employee shall be enrolled as a member
3002	in participant of the investment plan Public Employee Optional
3003	Retirement Program, the employee's membership in the Florida
3004	Retirement System shall be governed by the provisions of this
3005	part, and the employee's participation in the State Community
3006	College System Optional Retirement Program or the State
3007	University System Optional Retirement Program shall terminate.
3008	The employee's enrollment in the investment plan is Public
3009	Employee Optional Retirement Program shall be effective on the
3010	first day of the month for which a full month's employer and
3011	employee contribution is made to the investment plan optional
3012	program.
3013	4.  For purposes of this paragraph, "state employer" means
3014	any agency, board, branch, commission, community college,
3015	department, institution, institution of higher education, or
3016	water management district of the state, which participates in
3017	the Florida Retirement System for the benefit of certain
3018	employees.
3019	(b)1.  With respect to an eligible employee who is employed
3020	in a regularly established position on September 1, 2002, by a
3021	district school board employer:
3022	a.  Any such employee may elect to participate in the
3023	investment plan Public Employee Optional Retirement Program in
3024	lieu of retaining his or her membership in the pension plan
3025	defined benefit program of the Florida Retirement System. The
3026	election must be made in writing or by electronic means and must
3027	be filed with the third-party administrator by November 30, or,
3028	in the case of an active employee who is on a leave of absence
3029	on July 1, 2002, by the last business day of the 5th month
3030	following the month the leave of absence concludes. This
3031	election is irrevocable, except as provided in paragraph (g)
3032	(e). Upon making such election, the employee shall be enrolled
3033	as a member participant of the investment plan Public Employee
3034	Optional Retirement Program, the employee's membership in the
3035	Florida Retirement System shall be governed by the provisions of
3036	this part, and the employee's membership in the pension plan
3037	defined benefit program of the Florida Retirement System shall
3038	terminate. The employee's enrollment in the investment plan
3039	Public Employee Optional Retirement Program shall be effective
3040	the first day of the month for which a full month's employer
3041	contribution is made to the investment optional program.
3042	b.  Any such employee who fails to elect to participate in
3043	the investment plan Public Employee Optional Retirement Program
3044	within the prescribed time period is deemed to have elected to
3045	retain membership in the pension plan defined benefit program of
3046	the Florida Retirement System, and the employee's option to
3047	elect to participate in the investment plan optional program is
3048	forfeited.
3049	2.  With respect to employees who become eligible to
3050	participate in the investment plan Public Employee Optional
3051	Retirement Program by reason of employment in a regularly
3052	established position with a district school board employer
3053	commencing after July 1, 2002:
3054	a.  Any such employee shall, by default, be enrolled in the
3055	pension plan defined benefit retirement program of the Florida
3056	Retirement System at the commencement of employment, and may, by
3057	the last business day of the 5th month following the employee's
3058	month of hire, elect to participate in the investment plan
3059	Public Employee Optional Retirement Program. The employee's
3060	election must be made in writing or by electronic means and must
3061	be filed with the third-party administrator. The election to
3062	participate in the investment plan optional program is
3063	irrevocable, except as provided in paragraph (g) (e).
3064	b.  If the employee files such election within the
3065	prescribed time period, enrollment in the investment plan
3066	optional program shall be effective on the first day of
3067	employment. The employer retirement contributions paid through
3068	the month of the employee plan change shall be transferred to
3069	the investment plan optional program, and, effective the first
3070	day of the next month, the employer shall pay the applicable
3071	contributions based on the employee membership class in the
3072	investment plan optional program.
3073	c.  Any such employee who fails to elect to participate in
3074	the investment plan Public Employee Optional Retirement Program
3075	within the prescribed time period is deemed to have elected to
3076	retain membership in the pension plan defined benefit program of
3077	the Florida Retirement System, and the employee's option to
3078	elect to participate in the investment plan optional program is
3079	forfeited.
3080	3.  For purposes of this paragraph, "district school board
3081	employer" means any district school board that participates in
3082	the Florida Retirement System for the benefit of certain
3083	employees, or a charter school or charter technical career
3084	center that participates in the Florida Retirement System as
3085	provided in s. 121.051(2)(d).
3086	(c)1.  With respect to an eligible employee who is employed
3087	in a regularly established position on December 1, 2002, by a
3088	local employer:
3089	a.  Any such employee may elect to participate in the
3090	investment plan Public Employee Optional Retirement Program in
3091	lieu of retaining his or her membership in the pension plan
3092	defined benefit program of the Florida Retirement System. The
3093	election must be made in writing or by electronic means and must
3094	be filed with the third-party administrator by February 28,
3095	2003, or, in the case of an active employee who is on a leave of
3096	absence on October 1, 2002, by the last business day of the 5th
3097	month following the month the leave of absence concludes. This
3098	election is irrevocable, except as provided in paragraph (g)
3099	(e). Upon making such election, the employee shall be enrolled
3100	as a participant of the investment plan Public Employee Optional
3101	Retirement Program, the employee's membership in the Florida
3102	Retirement System shall be governed by the provisions of this
3103	part, and the employee's membership in the pension plan defined
3104	benefit program of the Florida Retirement System shall
3105	terminate. The employee's enrollment in the investment plan
3106	Public Employee Optional Retirement Program shall be effective
3107	the first day of the month for which a full month's employer
3108	contribution is made to the investment plan optional program.
3109	b.  Any such employee who fails to elect to participate in
3110	the investment plan Public Employee Optional Retirement Program
3111	within the prescribed time period is deemed to have elected to
3112	retain membership in the pension plan defined benefit program of
3113	the Florida Retirement System, and the employee's option to
3114	elect to participate in the investment plan optional program is
3115	forfeited.
3116	2.  With respect to employees who become eligible to
3117	participate in the investment plan Public Employee Optional
3118	Retirement Program by reason of employment in a regularly
3119	established position with a local employer commencing after
3120	October 1, 2002:
3121	a.  Any such employee shall, by default, be enrolled in the
3122	pension plan defined benefit retirement program of the Florida
3123	Retirement System at the commencement of employment, and may, by
3124	the last business day of the 5th month following the employee's
3125	month of hire, elect to participate in the investment plan
3126	Public Employee Optional Retirement Program. The employee's
3127	election must be made in writing or by electronic means and must
3128	be filed with the third-party administrator. The election to
3129	participate in the investment plan optional program is
3130	irrevocable, except as provided in paragraph (g) (e).
3131	b.  If the employee files such election within the
3132	prescribed time period, enrollment in the investment plan
3133	optional program shall be effective on the first day of
3134	employment. The employer retirement contributions paid through
3135	the month of the employee plan change shall be transferred to
3136	the investment plan optional program, and, effective the first
3137	day of the next month, the employer shall pay the applicable
3138	contributions based on the employee membership class in the
3139	investment plan optional program.
3140	c.  Any such employee who fails to elect to participate in
3141	the investment plan Public Employee Optional Retirement Program
3142	within the prescribed time period is deemed to have elected to
3143	retain membership in the pension plan defined benefit program of
3144	the Florida Retirement System, and the employee's option to
3145	elect to participate in the investment plan optional program is
3146	forfeited.
3147	3.  For purposes of this paragraph, "local employer" means
3148	any employer not included in paragraph (a) or paragraph (b).
3149	(d)  Contributions available for self-direction by a member
3150	participant who has not selected one or more specific investment
3151	products shall be allocated as prescribed by the state board.
3152	The third-party administrator shall notify the member any such
3153	participant at least quarterly that the member participant
3154	should take an affirmative action to make an asset allocation
3155	among the investment optional program products.
3156	(e)  On or after July 1, 2011, a member of the pension plan
3157	who obtains a refund of employee contributions retains his or
3158	her prior plan choice upon return to employment in a regularly
3159	established position with a participating employer.
3160	(f)  A member of the investment plan who takes a
3161	distribution of any contributions from his or her investment
3162	plan account is considered a retiree. Upon reemployment in a
3163	regularly established position with a participating employer,
3164	the member returns as a new hire. A retiree who is initially
3165	reemployed on or after July 1, 2010, is not eligible for renewed
3166	membership.
3167	(g)(e)  After the period during which an eligible employee
3168	had the choice to elect the pension plan defined benefit program
3169	or the investment plan optional retirement program, or the month
3170	following the receipt of the eligible employee's plan election,
3171	if sooner, the employee shall have one opportunity, at the
3172	employee's discretion, to choose to move from the pension plan
3173	defined benefit program to the investment plan optional
3174	retirement program or from the investment plan optional
3175	retirement program to the pension plan defined benefit program.
3176	Eligible employees may elect to move between Florida Retirement
3177	System programs only if they are earning service credit in an
3178	employer-employee relationship consistent with s.
3179	121.021(17)(b), excluding leaves of absence without pay.
3180	Effective July 1, 2005, such elections are effective on the
3181	first day of the month following the receipt of the election by
3182	the third-party administrator and are not subject to the
3183	requirements regarding an employer-employee relationship or
3184	receipt of contributions for the eligible employee in the
3185	effective month, except when the election is received by the
3186	third-party administrator. This paragraph is contingent upon
3187	approval by from the Internal Revenue Service for including the
3188	choice described herein within the programs offered by the
3189	Florida Retirement System.
3190	1.  If the employee chooses to move to the investment plan
3191	optional retirement program, the applicable provisions of
3192	subsection (3) this section shall govern the transfer.
3193	2.  If the employee chooses to move to the pension plan
3194	defined benefit program, the employee must transfer from his or
3195	her investment plan optional retirement program account, and
3196	from other employee moneys as necessary, a sum representing the
3197	present value of that employee's accumulated benefit obligation
3198	immediately following the time of such movement, determined
3199	assuming that attained service equals the sum of service in the
3200	pension plan defined benefit program and service in the
3201	investment plan optional retirement program. Benefit
3202	commencement occurs on the first date the employee is eligible
3203	for unreduced benefits, using the discount rate and other
3204	relevant actuarial assumptions that were used to value the
3205	pension defined benefit plan liabilities in the most recent
3206	actuarial valuation. For any employee who, at the time of the
3207	second election, already maintains an accrued benefit amount in
3208	the pension plan defined benefit program, the then-present value
3209	of the accrued benefit shall be deemed part of the required
3210	transfer amount. The division shall ensure that the transfer sum
3211	is prepared using a formula and methodology certified by an
3212	enrolled actuary. A refund of any employee contributions or
3213	additional member payments made which exceed the employee
3214	contributions that would have accrued had the member remained in
3215	the pension plan and not transferred to the investment plan is
3216	not permitted.
3217	3.  Notwithstanding subparagraph 2., an employee who
3218	chooses to move to the pension plan defined benefit program and
3219	who became eligible to participate in the investment plan
3220	optional retirement program by reason of employment in a
3221	regularly established position with a state employer after June
3222	1, 2002; a district school board employer after September 1,
3223	2002; or a local employer after December 1, 2002, must transfer
3224	from his or her investment plan optional retirement program
3225	account, and from other employee moneys as necessary, a sum
3226	representing the employee's actuarial accrued liability. A
3227	refund of any employee contributions or additional participant
3228	payments made which exceed the employee contributions that would
3229	have accrued had the member remained in the pension plan and not
3230	transferred to the investment plan is not permitted.
3231	4.  An employee's ability to transfer from the pension plan
3232	defined benefit program to the investment plan optional
3233	retirement program pursuant to paragraphs (a)-(d), and the
3234	ability of a current employee to have an option to later
3235	transfer back into the pension plan defined benefit program
3236	under subparagraph 2., shall be deemed a significant system
3237	amendment. Pursuant to s. 121.031(4), any resulting unfunded
3238	liability arising from actual original transfers from the
3239	pension plan defined benefit program to the investment plan
3240	optional program must be amortized within 30 plan years as a
3241	separate unfunded actuarial base independent of the reserve
3242	stabilization mechanism defined in s. 121.031(3)(f). For the
3243	first 25 years, a direct amortization payment may not be
3244	calculated for this base. During this 25-year period, the
3245	separate base shall be used to offset the impact of employees
3246	exercising their second program election under this paragraph.
3247	It is the intent of the Legislature that The actuarial funded
3248	status of the pension plan will defined benefit program not be
3249	affected by such second program elections in any significant
3250	manner, after due recognition of the separate unfunded actuarial
3251	base. Following the initial 25-year period, any remaining
3252	balance of the original separate base shall be amortized over
3253	the remaining 5 years of the required 30-year amortization
3254	period.
3255	5.  If the employee chooses to transfer from the investment
3256	plan optional retirement program to the pension plan defined
3257	benefit program and retains an excess account balance in the
3258	investment plan optional program after satisfying the buy-in
3259	requirements under this paragraph, the excess may not be
3260	distributed until the member retires from the pension plan
3261	defined benefit program. The excess account balance may be
3262	rolled over to the pension plan defined benefit program and used
3263	to purchase service credit or upgrade creditable service in the
3264	pension plan that program.
3265	(5)  CONTRIBUTIONS.-
3266	(a)  The employee and Each employer shall make the required
3267	contributions to contribute on behalf of each participant in the
3268	investment plan based on a percentage of the employee's gross
3269	monthly compensation Public Employee Optional Retirement
3270	Program, as provided in part III of this chapter.
3271	(b)  Employee contributions shall be paid as provided in s.
3272	121.72(2).
3273	(c)  The state board, acting as plan fiduciary, shall
3274	ensure that all plan assets are held in a trust, pursuant to s.
3275	401 of the Internal Revenue Code. The fiduciary shall ensure
3276	that such said contributions are allocated as follows:
3277	1.  The employer and employee contribution portion
3278	earmarked for member participant accounts shall be used to
3279	purchase interests in the appropriate investment vehicles for
3280	the accounts of each participant as specified by the member
3281	participant, or in accordance with paragraph (4)(d).
3282	2.  The employer contribution portion earmarked for
3283	administrative and educational expenses shall be transferred to
3284	the Florida Retirement System Investment Plan Trust Fund board.
3285	3.  The employer contribution portion earmarked for
3286	disability benefits shall be transferred to the Florida
3287	Retirement System Trust Fund department.
3288	(d)(b)  The third-party administrator is Employers are
3289	responsible for monitoring and notifying employers of the
3290	participants regarding maximum contribution levels allowed for
3291	members permitted under the Internal Revenue Code. If a member
3292	participant contributes to any other tax-deferred plan, the
3293	member he or she is responsible for ensuring that total
3294	contributions made to the investment plan optional program and
3295	to any other such plan do not exceed federally permitted
3296	maximums.
3297	(e)(c)  The investment plan Public Employee Optional
3298	Retirement Program may accept for deposit into member
3299	participant accounts contributions in the form of rollovers or
3300	direct trustee-to-trustee transfers by or on behalf of members
3301	participants, reasonably determined by the state board to be
3302	eligible for rollover or transfer to the investment plan
3303	optional retirement program pursuant to the Internal Revenue
3304	Code, if such contributions are made in accordance with rules as
3305	may be adopted by the board. Such contributions must shall be
3306	accounted for in accordance with any applicable Internal Revenue
3307	Code requirements and rules of the state board.
3308	(6)  VESTING REQUIREMENTS.-
3309	(a)  A member is fully and immediately vested in all
3310	employee contributions paid to the investment plan as provided
3311	in s. 121.72(2), plus interest and earnings thereon and less
3312	investment fees and administrative charges.
3313	(b)(a)1.  With respect to employer contributions paid on
3314	behalf of the member participant to the investment plan optional
3315	retirement program, plus interest and earnings thereon and less
3316	investment fees and administrative charges, a member participant
3317	is vested after completing 1 work year with an employer,
3318	including any service while the member participant was a member
3319	of the pension plan defined benefit program or an optional
3320	retirement program authorized under s. 121.051(2)(c) or s.
3321	121.055(6).
3322	2.  If the member participant terminates employment before
3323	satisfying the vesting requirements, the nonvested accumulation
3324	must be transferred from the member's participant's accounts to
3325	the state board for deposit and investment by the state board in
3326	its the suspense account created within the Florida Retirement
3327	System Investment Plan Public Employee Optional Retirement
3328	Program Trust Fund. If the terminated member participant is
3329	reemployed as an eligible employee within 5 years, the state
3330	board shall transfer to the member's participant's account any
3331	amount previously transferred from the member's participant's
3332	accounts to the suspense account, plus actual earnings on such
3333	amount while in the suspense account.
3334	(c)(b)1.  With respect to amounts contributed by an
3335	employer and transferred from the pension plan defined benefit
3336	program to the investment plan program, plus interest and
3337	earnings, and less investment fees and administrative charges, a
3338	member participant shall be vested in the amount transferred
3339	upon meeting the service requirements for the member's
3340	participant's membership class as set forth in s. 121.021(29).
3341	The third-party administrator shall account for such amounts for
3342	each member participant. The division shall notify the member
3343	participant and the third-party administrator when the member
3344	participant has satisfied the vesting period for Florida
3345	Retirement System purposes.
3346	2.  If the member participant terminates employment before
3347	satisfying the vesting requirements, the nonvested accumulation
3348	must be transferred from the member's participant's accounts to
3349	the state board for deposit and investment by the state board in
3350	the suspense account created within the Florida Retirement
3351	System Investment Plan Public Employee Optional Retirement
3352	Program Trust Fund. If the terminated member participant is
3353	reemployed as an eligible employee within 5 years, the state
3354	board shall transfer to the member's accounts participant's
3355	account any amount previously transferred from the member's
3356	participant's accounts to the suspense account, plus the actual
3357	earnings on such amount while in the suspense account.
3358	(d)(c)  Any nonvested accumulations transferred from a
3359	member's participant's account to the state board's suspense
3360	account shall be forfeited, including accompanying service
3361	credit, by the member participant if the member participant is
3362	not reemployed as an eligible employee within 5 years after
3363	termination.
3364	(e)  If the member elects to receive any of his or her
3365	vested employee or employer contributions upon termination of
3366	employment as provided in s. 121.021(39)(a), except for a
3367	mandatory distribution of a de minimis account authorized by the
3368	state board or a minimum required distribution provided by s.
3369	401(a)(9) of the Internal Revenue Code, the member shall forfeit
3370	all nonvested employer contributions, and accompanying service
3371	credit, paid on behalf of the member to the investment plan.
3372	(7)  BENEFITS.-Under the investment plan, benefits must
3373	Public Employee Optional Retirement Program:
3374	(a)  Benefits shall Be provided in accordance with s.
3375	401(a) of the Internal Revenue Code.
3376	(b)  Benefits shall Accrue in individual accounts that are
3377	member-directed participant-directed, portable, and funded by
3378	employer and employee contributions and earnings thereon.
3379	(c)  Benefits shall Be payable in accordance with the
3380	provisions of s. 121.591.
3381	(8)  INVESTMENT PLAN ADMINISTRATION OF PROGRAM.-
3382	(a)  The investment plan optional retirement program shall
3383	be administered by the state board and affected employers. The
3384	state board may require oaths, by affidavit or otherwise, and
3385	acknowledgments from persons in connection with the
3386	administration of its statutory duties and responsibilities for
3387	the investment plan this program. An oath, by affidavit or
3388	otherwise, may not be required of a member an employee
3389	participant at the time of enrollment. Acknowledgment of an
3390	employee's election to participate in the program shall be no
3391	greater than necessary to confirm the employee's election. The
3392	state board shall adopt rules to carry out its statutory duties
3393	with respect to administering the investment plan optional
3394	retirement program, including establishing the roles and
3395	responsibilities of affected state, local government, and
3396	education-related employers, the state board, the department,
3397	and third-party contractors. The department shall adopt rules
3398	necessary to administer the investment plan optional program in
3399	coordination with the pension plan defined benefit program and
3400	the disability benefits available under the investment plan
3401	optional program.
3402	(a)(b)1.  The state board shall select and contract with a
3403	one third-party administrator to provide administrative services
3404	if those services cannot be competitively and contractually
3405	provided by the division of Retirement within the Department of
3406	Management Services. With the approval of the state board, the
3407	third-party administrator may subcontract with other
3408	organizations or individuals to provide components of the
3409	administrative services. As a cost of administration, the state
3410	board may compensate any such contractor for its services, in
3411	accordance with the terms of the contract, as is deemed
3412	necessary or proper by the board. The third-party administrator
3413	may not be an approved provider or be affiliated with an
3414	approved provider.
3415	2.  These administrative services may include, but are not
3416	limited to, enrollment of eligible employees, collection of
3417	employer and employee contributions, disbursement of such
3418	contributions to approved providers in accordance with the
3419	allocation directions of members participants; services relating
3420	to consolidated billing; individual and collective recordkeeping
3421	and accounting; asset purchase, control, and safekeeping; and
3422	direct disbursement of funds to and from the third-party
3423	administrator, the division, the state board, employers, members
3424	participants, approved providers, and beneficiaries. This
3425	section does not prevent or prohibit a bundled provider from
3426	providing any administrative or customer service, including
3427	accounting and administration of individual member participant
3428	benefits and contributions; individual member participant
3429	recordkeeping; asset purchase, control, and safekeeping; direct
3430	execution of the member's participant's instructions as to asset
3431	and contribution allocation; calculation of daily net asset
3432	values; direct access to member participant account information;
3433	or periodic reporting to members participants, at least
3434	quarterly, on account balances and transactions, if these
3435	services are authorized by the state board as part of the
3436	contract.
3437	(b)1.3.  The state board shall select and contract with one
3438	or more organizations to provide educational services. With
3439	approval of the state board, the organizations may subcontract
3440	with other organizations or individuals to provide components of
3441	the educational services. As a cost of administration, the state
3442	board may compensate any such contractor for its services in
3443	accordance with the terms of the contract, as is deemed
3444	necessary or proper by the board. The education organization may
3445	not be an approved provider or be affiliated with an approved
3446	provider.
3447	2.4.  Educational services shall be designed by the state
3448	board and department to assist employers, eligible employees,
3449	members participants, and beneficiaries in order to maintain
3450	compliance with United States Department of Labor regulations
3451	under s. 404(c) of the Employee Retirement Income Security Act
3452	of 1974 and to assist employees in their choice of pension plan
3453	defined benefit or investment plan defined contribution
3454	retirement alternatives. Educational services include, but are
3455	not limited to, disseminating educational materials; providing
3456	retirement planning education; explaining the pension
3457	differences between the defined benefit retirement plan and the
3458	investment defined contribution retirement plan; and offering
3459	financial planning guidance on matters such as investment
3460	diversification, investment risks, investment costs, and asset
3461	allocation. An approved provider may also provide educational
3462	information, including retirement planning and investment
3463	allocation information concerning its products and services.
3464	(c)1.  In evaluating and selecting a third-party
3465	administrator, the state board shall establish criteria for
3466	evaluating under which it shall consider the relative
3467	capabilities and qualifications of each proposed administrator.
3468	In developing such criteria, the state board shall consider:
3469	a.  The administrator's demonstrated experience in
3470	providing administrative services to public or private sector
3471	retirement systems.
3472	b.  The administrator's demonstrated experience in
3473	providing daily valued recordkeeping to defined contribution
3474	programs plans.
3475	c.  The administrator's ability and willingness to
3476	coordinate its activities with the Florida Retirement System
3477	employers, the state board, and the division, and to supply to
3478	such employers, the board, and the division the information and
3479	data they require, including, but not limited to, monthly
3480	management reports, quarterly member participant reports, and ad
3481	hoc reports requested by the department or state board.
3482	d.  The cost-effectiveness and levels of the administrative
3483	services provided.
3484	e.  The administrator's ability to interact with the
3485	members participants, the employers, the state board, the
3486	division, and the providers; the means by which members
3487	participants may access account information, direct investment
3488	of contributions, make changes to their accounts, transfer
3489	moneys between available investment vehicles, and transfer
3490	moneys between investment products; and any fees that apply to
3491	such activities.
3492	f.  Any other factor deemed necessary by the Trustees of
3493	the state board of Administration.
3494	2.  In evaluating and selecting an educational provider,
3495	the state board shall establish criteria under which it shall
3496	consider the relative capabilities and qualifications of each
3497	proposed educational provider. In developing such criteria, the
3498	state board shall consider:
3499	a.  Demonstrated experience in providing educational
3500	services to public or private sector retirement systems.
3501	b.  Ability and willingness to coordinate its activities
3502	with the Florida Retirement System employers, the state board,
3503	and the division, and to supply to such employers, the board,
3504	and the division the information and data they require,
3505	including, but not limited to, reports on educational contacts.
3506	c.  The cost-effectiveness and levels of the educational
3507	services provided.
3508	d.  Ability to provide educational services via different
3509	media, including, but not limited to, the Internet, personal
3510	contact, seminars, brochures, and newsletters.
3511	e.  Any other factor deemed necessary by the Trustees of
3512	the state board of Administration.
3513	3.  The establishment of the criteria shall be solely
3514	within the discretion of the state board.
3515	(d)  The state board shall develop the form and content of
3516	any contracts to be offered under the investment plan Public
3517	Employee Optional Retirement Program. In developing the its
3518	contracts, the board shall must consider:
3519	1.  The nature and extent of the rights and benefits to be
3520	afforded in relation to the required contributions required
3521	under the plan program.
3522	2.  The suitability of the rights and benefits provided to
3523	be afforded and the interests of employers in the recruitment
3524	and retention of eligible employees.
3525	(e)1.  The state board may contract with any consultant for
3526	professional services, including legal, consulting, accounting,
3527	and actuarial services, deemed necessary to implement and
3528	administer the investment plan optional program by the Trustees
3529	of the State Board of Administration. The state board may enter
3530	into a contract with one or more vendors to provide low-cost
3531	investment advice to members participants, supplemental to
3532	education provided by the third-party administrator. All fees
3533	under any such contract shall be paid by those members
3534	participants who choose to use the services of the vendor.
3535	2.  The department may contract with consultants for
3536	professional services, including legal, consulting, accounting,
3537	and actuarial services, deemed necessary to implement and
3538	administer the investment plan optional program in coordination
3539	with the pension plan defined benefit program of the Florida
3540	Retirement System. The department, in coordination with the
3541	state board, may enter into a contract with the third-party
3542	administrator in order to coordinate services common to the
3543	various programs within the Florida Retirement System.
3544	(f)  The third-party administrator may shall not receive
3545	direct or indirect compensation from an approved provider,
3546	except as specifically provided for in the contract with the
3547	state board.
3548	(g)  The state board shall receive and resolve member
3549	participant complaints against the program, the third-party
3550	administrator, or any program vendor or provider; shall resolve
3551	any conflict between the third-party administrator and an
3552	approved provider if such conflict threatens the implementation
3553	or administration of the program or the quality of services to
3554	employees; and may resolve any other conflicts. The third-party
3555	administrator shall retain all member participant records for at
3556	least 5 years for use in resolving any member participant
3557	conflicts. The state board, the third-party administrator, or a
3558	provider is not required to produce documentation or an audio
3559	recording to justify action taken with regard to a member
3560	participant if the action occurred 5 or more years before the
3561	complaint is submitted to the state board. It is presumed that
3562	all action taken 5 or more years before the complaint is
3563	submitted was taken at the request of the member participant and
3564	with the member's participant's full knowledge and consent. To
3565	overcome this presumption, the member participant must present
3566	documentary evidence or an audio recording demonstrating
3567	otherwise.
3568	(9)  INVESTMENT OPTIONS OR PRODUCTS; PERFORMANCE REVIEW.-
3569	(a)  The state board shall develop policy and procedures
3570	for selecting, evaluating, and monitoring the performance of
3571	approved providers and investment products to which employees
3572	may direct retirement contributions under the investment plan
3573	program. In accordance with such policy and procedures, the
3574	state board shall designate and contract for a number of
3575	investment products as determined by the board. The board shall
3576	also select one or more bundled providers, each of which whom
3577	may offer multiple investment options and related services, if
3578	when such an approach is determined by the board to provide
3579	afford value to the members participants otherwise not available
3580	through individual investment products. Each approved bundled
3581	provider may offer investment options that provide members
3582	participants with the opportunity to invest in each of the
3583	following asset classes, to be composed of individual options
3584	that represent either a single asset class or a combination
3585	thereof: money markets, United States fixed income, United
3586	States equities, and foreign stock. The state board shall review
3587	and manage all educational materials, contract terms, fee
3588	schedules, and other aspects of the approved provider
3589	relationships to ensure that no provider is unduly favored or
3590	penalized by virtue of its status within the investment plan.
3591	(b)  The state board shall consider investment options or
3592	products it considers appropriate to give members participants
3593	the opportunity to accumulate retirement benefits, subject to
3594	the following:
3595	1.  The investment plan Public Employee Optional Retirement
3596	Program must offer a diversified mix of low-cost investment
3597	products that span the risk-return spectrum and may include a
3598	guaranteed account as well as investment products, such as
3599	individually allocated guaranteed and variable annuities, which
3600	meet the requirements of this subsection and combine the ability
3601	to accumulate investment returns with the option of receiving
3602	lifetime income consistent with the long-term retirement
3603	security of a pension plan and similar to the lifetime-income
3604	benefit provided by the Florida Retirement System.
3605	2.  Investment options or products offered by the group of
3606	approved providers may include mutual funds, group annuity
3607	contracts, individual retirement annuities, interests in trusts,
3608	collective trusts, separate accounts, and other such financial
3609	instruments, and may include products that give members
3610	participants the option of committing their contributions for an
3611	extended time period in an effort to obtain returns higher than
3612	those that could be obtained from investment products offering
3613	full liquidity.
3614	3.  The state board may shall not contract with a any
3615	provider that imposes a front-end, back-end, contingent, or
3616	deferred sales charge, or any other fee that limits or restricts
3617	the ability of members participants to select any investment
3618	product available in the investment plan optional program. This
3619	prohibition does not apply to fees or charges that are imposed
3620	on withdrawals from products that give members participants the
3621	option of committing their contributions for an extended time
3622	period in an effort to obtain returns higher than those that
3623	could be obtained from investment products offering full
3624	liquidity, if provided that the product in question, net of all
3625	fees and charges, produces material benefits relative to other
3626	comparable products in the investment plan program offering full
3627	liquidity.
3628	4.  Fees or charges for insurance features, such as
3629	mortality and expense-risk charges, must be reasonable relative
3630	to the benefits provided.
3631	(c)  In evaluating and selecting approved providers and
3632	products, the state board shall establish criteria for
3633	evaluating under which it shall consider the relative
3634	capabilities and qualifications of each proposed provider
3635	company and product. In developing such criteria, the board
3636	shall consider the following to the extent such factors may be
3637	applied in connection with investment products, services, or
3638	providers:
3639	1.  Experience in the United States providing retirement
3640	products and related financial services under defined
3641	contribution retirement programs plans.
3642	2.  Financial strength and stability as which shall be
3643	evidenced by the highest ratings assigned by nationally
3644	recognized rating services when comparing proposed providers
3645	that are so rated.
3646	3.  Intrastate and interstate portability of the product
3647	offered, including early withdrawal options.
3648	4.  Compliance with the Internal Revenue Code.
3649	5.  The cost-effectiveness of the product provided and the
3650	levels of service supporting the product relative to its
3651	benefits and its characteristics, including, without limitation,
3652	the level of risk borne by the provider.
3653	6.  The provider company's ability and willingness to
3654	coordinate its activities with Florida Retirement System
3655	employers, the department, and the state board, and to supply
3656	the to such employers, the department, and the board with the
3657	information and data they require.
3658	7.  The methods available to members participants to
3659	interact with the provider company; the means by which members
3660	participants may access account information, direct investment
3661	of contributions, make changes to their accounts, transfer
3662	moneys between available investment vehicles, and transfer
3663	moneys between provider companies; and any fees that apply to
3664	such activities.
3665	8.  The provider company's policies with respect to the
3666	transfer of individual account balances, contributions, and
3667	earnings thereon, both internally among investment products
3668	offered by the provider company and externally between approved
3669	providers, as well as any fees, charges, reductions, or
3670	penalties that may be applied.
3671	9.  An evaluation of specific investment products, taking
3672	into account each product's experience in meeting its investment
3673	return objectives net of all related fees, expenses, and
3674	charges, including, but not limited to, investment management
3675	fees, loads, distribution and marketing fees, custody fees,
3676	recordkeeping fees, education fees, annuity expenses, and
3677	consulting fees.
3678	10.  Organizational factors, including, but not limited to,
3679	financial solvency, organizational depth, and experience in
3680	providing institutional and retail investment services.
3681	(d)  By March 1, 2010, the state board shall identify and
3682	offer at least one terror-free investment product that allocates
3683	its funds among securities not subject to divestiture as
3684	provided in s. 215.473 if the investment product is deemed by
3685	the state board to be consistent with prudent investor
3686	standards. A No person may not bring a civil, criminal, or
3687	administrative action against an approved provider; the state
3688	board; or any employee, officer, director, or trustee of such
3689	provider based upon the divestiture of any security or the
3690	offering of a terror-free investment product as specified in
3691	this paragraph.
3692	(e)  As a condition of offering an any investment option or
3693	product in the investment plan optional retirement program, the
3694	approved provider must agree to make the investment product or
3695	service available under the most beneficial terms offered to any
3696	other customer, subject to approval by the Trustees of the state
3697	board of Administration.
3698	(f)  The state board shall regularly review the performance
3699	of each approved provider and product and related organizational
3700	factors to ensure continued compliance with established
3701	selection criteria and with board policy and procedures.
3702	Providers and products may be terminated subject to contract
3703	provisions. The state board shall adopt procedures to transfer
3704	account balances from terminated products or providers to other
3705	products or providers in the investment plan optional program.
3706	(g)1.  An approved provider shall comply with all
3707	applicable federal and state securities and insurance laws and
3708	regulations applicable to the provider, as well as with the
3709	applicable rules and guidelines of the National Association of
3710	Securities Dealers which govern the ethical marketing of
3711	investment products. In furtherance of this mandate, an approved
3712	provider must agree in its contract with the state board to
3713	establish and maintain a compliance education and monitoring
3714	system to supervise the activities of all personnel who directly
3715	communicate with individual members participants and recommend
3716	investment products, which system is consistent with rules of
3717	the National Association of Securities Dealers.
3718	2.  Approved provider personnel who directly communicate
3719	with individual members participants and who recommend
3720	investment products shall make an independent and unbiased
3721	determination as to whether an investment product is suitable
3722	for a particular member participant.
3723	3.  The state board shall develop procedures to receive and
3724	resolve member participant complaints against a provider or
3725	approved provider personnel, and, if when appropriate, refer
3726	such complaints to the appropriate agency.
3727	4.  Approved providers may not sell or in any way
3728	distribute any customer list or member participant
3729	identification information generated through their offering of
3730	products or services through the investment plan optional
3731	retirement program.
3732	(10)  EDUCATION COMPONENT.-
3733	(a)  The state board, in coordination with the department,
3734	shall provide for an education component for system members in a
3735	manner consistent with the provisions of this section. The
3736	education component must be available to eligible employees at
3737	least 90 days prior to the beginning date of the election period
3738	for the employees of the respective types of employers.
3739	(b)  The education component must provide system members
3740	with impartial and balanced information about plan choices. The
3741	education component must involve multimedia formats. Program
3742	comparisons must, to the greatest extent possible, be based upon
3743	the retirement income that different retirement programs may
3744	provide to the member participant. The state board shall monitor
3745	the performance of the contract to ensure that the program is
3746	conducted in accordance with the contract, applicable law, and
3747	the rules of the state board.
3748	(c)  The state board, in coordination with the department,
3749	shall provide for an initial and ongoing transfer education
3750	component to provide system members with information necessary
3751	to make informed plan choice decisions. The transfer education
3752	component must include, but is not limited to, information on:
3753	1.  The amount of money available to a member to transfer
3754	to the defined contribution program.
3755	2.  The features of and differences between the pension
3756	plan defined benefit program and the defined contribution
3757	program, both generally and specifically, as those differences
3758	may affect the member.
3759	3.  The expected benefit available if the member were to
3760	retire under each of the retirement programs, based on
3761	appropriate alternative sets of assumptions.
3762	4.  The rate of return from investments in the defined
3763	contribution program and the period of time over which such rate
3764	of return must be achieved to equal or exceed the expected
3765	monthly benefit payable to the member under the pension plan
3766	defined benefit program.
3767	5.  The historical rates of return for the investment
3768	alternatives available in the defined contribution programs.
3769	6.  The benefits and historical rates of return on
3770	investments available in a typical deferred compensation plan or
3771	a typical plan under s. 403(b) of the Internal Revenue Code for
3772	which the employee may be eligible.
3773	7.  The program choices available to employees of the State
3774	University System and the comparative benefits of each available
3775	program, if applicable.
3776	8.  Payout options available in each of the retirement
3777	programs.
3778	(d)  An ongoing education and communication component must
3779	provide eligible employees system members with information
3780	necessary to make informed decisions about choices within their
3781	retirement system program of membership and in preparation for
3782	retirement. The component must include, but is not limited to,
3783	information concerning:
3784	1.  Rights and conditions of membership.
3785	2.  Benefit features within the program, options, and
3786	effects of certain decisions.
3787	3.  Coordination of contributions and benefits with a
3788	deferred compensation plan under s. 457 or a plan under s.
3789	403(b) of the Internal Revenue Code.
3790	4.  Significant program changes.
3791	5.  Contribution rates and program funding status.
3792	6.  Planning for retirement.
3793	(e)  Descriptive materials must be prepared under the
3794	assumption that the employee is an unsophisticated investor, and
3795	all materials used in the education component must be approved
3796	by the state board prior to dissemination.
3797	(f)  The state board and the department shall also
3798	establish a communication component to provide program
3799	information to participating employers and the employers'
3800	personnel and payroll officers and to explain their respective
3801	responsibilities in conjunction with the retirement programs.
3802	(g)  Funding for education of new employees may reflect
3803	administrative costs to the investment plan optional program and
3804	the pension plan defined benefit program.
3805	(h)  Pursuant to subsection paragraph (8)(a), all Florida
3806	Retirement System employers have an obligation to regularly
3807	communicate the existence of the two Florida Retirement System
3808	plans and the plan choice in the natural course of administering
3809	their personnel functions, using the educational materials
3810	supplied by the state board and the Department of Management
3811	Services.
3812	(11)  MEMBER PARTICIPANT INFORMATION REQUIREMENTS.-The
3813	state board shall ensure that each member participant is
3814	provided a quarterly statement that accounts for the
3815	contributions made on behalf of the member such participant; the
3816	interest and investment earnings thereon; and any fees,
3817	penalties, or other deductions that apply thereto. At a minimum,
3818	such statements must:
3819	(a)  Indicate the member's participant's investment
3820	options.
3821	(b)  State the market value of the account at the close of
3822	the current quarter and previous quarter.
3823	(c)  Show account gains and losses for the period and
3824	changes in account accumulation unit values for the quarter
3825	period.
3826	(d)  Itemize account contributions for the quarter.
3827	(e)  Indicate any account changes due to adjustment of
3828	contribution levels, reallocation of contributions, balance
3829	transfers, or withdrawals.
3830	(f)  Set forth any fees, charges, penalties, and deductions
3831	that apply to the account.
3832	(g)  Indicate the amount of the account in which the member
3833	participant is fully vested and the amount of the account in
3834	which the member participant is not vested.
3835	(h)  Indicate each investment product's performance
3836	relative to an appropriate market benchmark.
3837
3838	The third-party administrator shall provide quarterly and annual
3839	summary reports to the state board and any other reports
3840	requested by the department or the state board. In any
3841	solicitation or offer of coverage under the investment plan an
3842	optional retirement program, a provider company shall be
3843	governed by the contract readability provisions of s. 627.4145,
3844	notwithstanding s. 627.4145(6)(c). In addition, all descriptive
3845	materials must be prepared under the assumption that the member
3846	participant is an unsophisticated investor. Provider companies
3847	must maintain an internal system of quality assurance, have
3848	proven functional systems that are date-calculation compliant,
3849	and be subject to a due-diligence inquiry that proves their
3850	capacity and fitness to undertake service responsibilities.
3851	(12)  ADVISORY COUNCIL TO PROVIDE ADVICE AND ASSISTANCE.-
3852	The Investment Advisory Council, created pursuant to s. 215.444,
3853	shall assist the state board in implementing and administering
3854	the investment plan Public Employee Optional Retirement Program.
3855	The Investment Advisory council, created pursuant to s. 215.444,
3856	shall review the state board's initial recommendations regarding
3857	the criteria to be used in selecting and evaluating approved
3858	providers and investment products. The council may provide
3859	comments on the recommendations to the state board within 45
3860	days after receiving the initial recommendations. The state
3861	board shall make the final determination as to whether any
3862	investment provider or product, any contractor, or any and all
3863	contract provisions are shall be approved for the investment
3864	plan program.
3865	(13)  FEDERAL REQUIREMENTS.-
3866	(a)  Provisions of This section shall be construed, and the
3867	investment plan Public Employee Optional Retirement Program
3868	shall be administered, so as to comply with the Internal Revenue
3869	Code, 26 U.S.C., and specifically with plan qualification
3870	requirements imposed on governmental plans under s. 401(a) of
3871	the Internal Revenue Code. The state board may shall have the
3872	power and authority to adopt rules reasonably necessary to
3873	establish or maintain the qualified status of the investment
3874	plan Optional Retirement Program under the Internal Revenue Code
3875	and to implement and administer the investment plan Optional
3876	Retirement Program in compliance with the Internal Revenue Code
3877	and as designated under this part; provided however, that the
3878	board shall not have the authority to adopt any rule which makes
3879	a substantive change to the investment plan Optional Retirement
3880	Program as designed by this part.
3881	(b)  Any section or provision of this chapter which is
3882	susceptible to more than one construction shall must be
3883	interpreted in favor of the construction most likely to satisfy
3884	requirements imposed by s. 401(a) of the Internal Revenue Code.
3885	(c)  Contributions payable under this section for any
3886	limitation year may not exceed the maximum amount allowable for
3887	qualified defined contribution pension plans under applicable
3888	provisions of the Internal Revenue Code. If an employee who is
3889	enrolled has elected to participate in the investment plan
3890	Public Employee Optional Retirement Program participates in any
3891	other plan that is maintained by the participating employer,
3892	benefits that accrue under the investment plan Public Employee
3893	Optional Retirement Program shall be considered primary for any
3894	aggregate limitation applicable under s. 415 of the Internal
3895	Revenue Code.
3896	(14)  INVESTMENT POLICY STATEMENT.-
3897	(a)  Investment products and approved providers selected
3898	for the investment plan must Public Employee Optional Retirement
3899	Program shall conform with the Florida Retirement System
3900	Investment Plan Public Employee Optional Retirement Program
3901	Investment Policy Statement, herein referred to as the
3902	"statement," as developed and approved by the trustees of the
3903	state board of Administration. The statement must include, among
3904	other items, the investment objectives of the investment plan
3905	Public Employee Optional Retirement Program, manager selection
3906	and monitoring guidelines, and performance measurement criteria.
3907	As required from time to time, the executive director of the
3908	state board may present recommended changes in the statement to
3909	the board for approval.
3910	(b)  Prior to presenting the statement, or any recommended
3911	changes thereto, to the state board, the executive director of
3912	the board shall present such statement or changes to the
3913	Investment Advisory Council for review. The council shall
3914	present the results of its review to the board prior to the
3915	board's final approval of the statement or changes in the
3916	statement.
3917	(15)  STATEMENT OF FIDUCIARY STANDARDS AND
3918	RESPONSIBILITIES.-
3919	(a)  Investment of optional defined contribution retirement
3920	plan assets shall be made for the sole interest and exclusive
3921	purpose of providing benefits to members plan participants and
3922	beneficiaries and defraying reasonable expenses of administering
3923	the plan. The program's assets shall are to be invested, on
3924	behalf of the program members participants, with the care,
3925	skill, and diligence that a prudent person acting in a like
3926	manner would undertake. The performance of the investment duties
3927	set forth in this paragraph shall comply with the fiduciary
3928	standards set forth in the Employee Retirement Income Security
3929	Act of 1974 at 29 U.S.C. s. 1104(a)(1)(A)-(C). In case of
3930	conflict with other provisions of law authorizing investments,
3931	the investment and fiduciary standards set forth in this
3932	subsection shall prevail.
3933	(b)  If a member participant or beneficiary of the
3934	investment plan Public Employee Optional Retirement Program
3935	exercises control over the assets in his or her account, as
3936	determined by reference to regulations of the United States
3937	Department of Labor under s. 404(c) of the Employee Retirement
3938	Income Security Act of 1974 and all applicable laws governing
3939	the operation of the program, a no program fiduciary is not
3940	shall be liable for any loss to a member's participant's or
3941	beneficiary's account which results from the member's such
3942	participant's or beneficiary's exercise of control.
3943	(c)  Subparagraph (8)(b)2.4. and paragraph (15)(b)
3944	incorporate the federal law concept of participant control,
3945	established by regulations of the United States Department of
3946	Labor under s. 404(c) of the Employee Retirement Income Security
3947	Act of 1974 (ERISA). The purpose of this paragraph is to assist
3948	employers and the state board of Administration in maintaining
3949	compliance with s. 404(c), while avoiding unnecessary costs and
3950	eroding member participant benefits under the investment plan
3951	Public Employee Optional Retirement Program. Pursuant to 29
3952	C.F.R. s. 2550.404c-1(b)(2)(i)(B)(1)(viii), the state board of
3953	Administration or its designated agents shall deliver to members
3954	participants of the investment plan Public Employee Optional
3955	Retirement Program a copy of the prospectus most recently
3956	provided to the plan, and, pursuant to 29 C.F.R. s. 2550.404c-
3957	1(b)(2)(i)(B)(2)(ii), shall provide such members participants an
3958	opportunity to obtain this information, except that:
3959	1.  The requirement to deliver a prospectus shall be deemed
3960	to be satisfied by delivery of a fund profile or summary profile
3961	that contains the information that would be included in a
3962	summary prospectus as described by Rule 498 under the Securities
3963	Act of 1933, 17 C.F.R. s. 230.498. If When the transaction fees,
3964	expense information or other information provided by a mutual
3965	fund in the prospectus does not reflect terms negotiated by the
3966	state board of Administration or its designated agents, the
3967	aforementioned requirement is deemed to be satisfied by delivery
3968	of a separate document described by Rule 498 substituting
3969	accurate information; and
3970	2.  Delivery shall be deemed to have been effected if
3971	delivery is through electronic means and the following standards
3972	are satisfied:
3973	a.  Electronically-delivered documents are prepared and
3974	provided consistent with style, format, and content requirements
3975	applicable to printed documents;
3976	b.  Each member participant is provided timely and adequate
3977	notice of the documents that are to be delivered, and their
3978	significance thereof, and of the member's participant's right to
3979	obtain a paper copy of such documents free of charge;
3980	c.(I)  Members Participants have adequate access to the
3981	electronic documents, at locations such as their worksites or
3982	public facilities, and have the ability to convert the documents
3983	to paper free of charge by the state board of Administration,
3984	and the board or its designated agents take appropriate and
3985	reasonable measures to ensure that the system for furnishing
3986	electronic documents results in actual receipt., or
3987	(II)  Members Participants have provided consent to receive
3988	information in electronic format, which consent may be revoked;
3989	and
3990	d.  The state board of Administration, or its designated
3991	agent, actually provides paper copies of the documents free of
3992	charge, upon request.
3993	(16)  DISABILITY BENEFITS.-For any member participant of
3994	the investment plan optional retirement program who becomes
3995	totally and permanently disabled, benefits must shall be paid in
3996	accordance with the provisions of s. 121.591.
3997	(17)  SOCIAL SECURITY COVERAGE.-Social security coverage
3998	shall be provided for all officers and employees who become
3999	members participants of the investment plan optional program.
4000	Any modification of the present agreement with the Social
4001	Security Administration, or referendum required under the Social
4002	Security Act, for the purpose of providing social security
4003	coverage for any member shall be requested by the state agency
4004	in compliance with the applicable provisions of the Social
4005	Security Act governing such coverage. However, retroactive
4006	social security coverage for service prior to December 1, 1970,
4007	with the employer may shall not be provided for any member who
4008	was not covered under the agreement as of November 30, 1970.
4009	(18)  RETIREE HEALTH INSURANCE SUBSIDY.-All officers and
4010	employees who are members participants of the investment plan
4011	are optional program shall be eligible to receive the retiree
4012	health insurance subsidy, subject to the provisions of s.
4013	112.363.
4014	(19)  MEMBER PARTICIPANT RECORDS.-Personal identifying
4015	information of a member participant in the investment plan
4016	Public Employee Optional Retirement Program contained in Florida
4017	Retirement System records held by the state board of
4018	Administration or the department of Management Services is
4019	exempt from s. 119.07(1) and s. 24(a), Art. I of the State
4020	Constitution.
4021	(20)  DESIGNATION OF BENEFICIARIES.-
4022	(a)  Each member participant may, by electronic means or on
4023	a form provided for that purpose, signed and filed with the
4024	third-party administrator, designate a choice of one or more
4025	persons, named sequentially or jointly, as his or her
4026	beneficiary for receiving who shall receive the benefits, if
4027	any, which may be payable pursuant to this chapter in the event
4028	of the member's participant's death. If no beneficiary is named
4029	in this manner, or if no beneficiary designated by the member
4030	participant survives the member participant, the beneficiary
4031	shall be the spouse of the deceased, if living. If the member's
4032	participant's spouse is not alive at the time of the
4033	beneficiary's his or her death, the beneficiary shall be the
4034	living children of the member participant. If no children
4035	survive, the beneficiary shall be the member's participant's
4036	father or mother, if living; otherwise, the beneficiary shall be
4037	the member's participant's estate. The beneficiary most recently
4038	designated by a member participant on a form or letter filed
4039	with the third-party administrator shall be the beneficiary
4040	entitled to any benefits payable at the time of the member's
4041	participant's death. However Notwithstanding any other provision
4042	in this subsection to the contrary, for a member participant who
4043	dies prior to his or her effective date of retirement, the
4044	spouse at the time of death shall be the member's participant's
4045	beneficiary unless the member such participant designates a
4046	different beneficiary as provided in this subsection subsequent
4047	to the member's participant's most recent marriage.
4048	(b)  If a member participant designates a primary
4049	beneficiary other than the member's participant's spouse, the
4050	member's participant's spouse must sign the beneficiary
4051	designation form to acknowledge the designation. This
4052	requirement does not apply to the designation of one or more
4053	contingent beneficiaries to receive benefits remaining upon the
4054	death of the primary beneficiary or beneficiaries.
4055	(c)  Notwithstanding the member's participant's designation
4056	of benefits to be paid through a trust to a beneficiary that is
4057	a natural person, and notwithstanding the provisions of the
4058	trust, benefits must shall be paid directly to the beneficiary
4059	if the person is no longer a minor or an incapacitated person as
4060	defined in s. 744.102.
4061	(21)  PARTICIPATION BY TERMINATED DEFERRED RETIREMENT
4062	OPTION PROGRAM MEMBERS PARTICIPANTS.-Notwithstanding any other
4063	provision of law to the contrary, members participants in the
4064	Deferred Retirement Option Program offered under part I may,
4065	after conclusion of their participation in the program, elect to
4066	roll over or authorize a direct trustee-to-trustee transfer to
4067	an account under the investment plan Public Employee Optional
4068	Retirement Program of their Deferred Retirement Option Program
4069	proceeds distributed as provided under s. 121.091(13)(c)5. The
4070	transaction must constitute an "eligible rollover distribution"
4071	within the meaning of s. 402(c)(4) of the Internal Revenue Code.
4072	(a)  The investment plan Public Employee Optional
4073	Retirement Program may accept such amounts for deposit into
4074	member participant accounts as provided in paragraph (5)(e)(c).
4075	(b)  The affected member participant shall direct the
4076	investment of his or her investment account; however, unless he
4077	or she becomes a renewed member of the Florida Retirement System
4078	under s. 121.122 and elects to participate in the investment
4079	plan Public Employee Optional Retirement Program, no employer
4080	contributions may not be made to the member's participant's
4081	account as provided under paragraph (5)(a).
4082	(c)  The state board or the department is not responsible
4083	for locating those persons who may be eligible to participate in
4084	the investment plan Public Employee Optional Retirement Program
4085	under this subsection.
4086	(22)  CREDIT FOR MILITARY SERVICE.-Creditable service of
4087	any member of the investment plan includes Public Employee
4088	Optional Retirement Program shall include military service in
4089	the Armed Forces of the United States as provided in the
4090	conditions outlined in s. 121.111(1).
4091	Section 20.  Section 121.4502, Florida Statutes, is amended
4092	to read:
4093	121.4502  Florida Retirement System Investment Plan Public
4094	Employee Optional Retirement Program Trust Fund.-
4095	(1)  The Florida Retirement System Investment Plan Public
4096	Employee Optional Retirement Program Trust Fund is created to
4097	hold the assets of the Florida Retirement System Investment Plan
4098	Public Employee Optional Retirement Program in trust for the
4099	exclusive benefit of such program's members participants and
4100	beneficiaries, and for the payment of reasonable administrative
4101	expenses of the program, in accordance with s. 401 of the
4102	Internal Revenue Code, and shall be administered by the state
4103	board of Administration as trustee. Funds shall be credited to
4104	the trust fund as provided in this part, to be used for the
4105	purposes of this part. The trust fund is exempt from the service
4106	charges imposed by s. 215.20.
4107	(2)  The Florida Retirement System Investment Plan Public
4108	Employee Optional Retirement Program Trust Fund is a retirement
4109	trust fund of the Florida Retirement System that accounts for
4110	retirement plan assets held by the state in a trustee capacity
4111	as a fiduciary for individual participants in the Florida
4112	Retirement System Investment Plan Public Employee Optional
4113	Retirement Program and, pursuant to s. 19(f), Art. III of the
4114	State Constitution, is not subject to termination.
4115	(3)  A forfeiture account shall be created within the
4116	Florida Retirement System Investment Plan Public Employee
4117	Optional Retirement Program Trust Fund to hold the assets
4118	derived from the forfeiture of benefits by participants.
4119	Pursuant to a private letter ruling from the Internal Revenue
4120	Service, the forfeiture account may be used only for paying
4121	expenses of the Florida Retirement System Investment Plan Public
4122	Employee Optional Retirement Program and reducing future
4123	employer contributions to the program. Consistent with Rulings
4124	80-155 and 74-340 of the Internal Revenue Service, unallocated
4125	reserves within the forfeiture account must be used as quickly
4126	and as prudently as possible considering the state board's
4127	fiduciary duty. Expected withdrawals from the account must
4128	endeavor to reduce the account to zero each fiscal year.
4129	Section 21.  Subsections (1) and (3) of section 121.4503,
4130	Florida Statutes, are amended to read:
4131	121.4503  Florida Retirement System Contributions Clearing
4132	Trust Fund.-
4133	(1)  The Florida Retirement System Contributions Clearing
4134	Trust Fund is created as a clearing fund for disbursing employee
4135	and employer contributions to the component plans of the Florida
4136	Retirement System and shall be administered by the Department of
4137	Management Services. Funds shall be credited to the trust fund
4138	as provided in this chapter and shall be held in trust for the
4139	contributing members and employers until such time as the assets
4140	are transferred by the department to the Florida Retirement
4141	System Trust Fund, the Florida Retirement System Investment Plan
4142	Public Employee Optional Retirement Program Trust Fund, or other
4143	trust funds as authorized by law, to be used for the purposes of
4144	this chapter. The trust fund is exempt from the service charges
4145	imposed by s. 215.20.
4146	(3)  The Department of Management Services may adopt rules
4147	governing the receipt and disbursement of amounts received by
4148	the Florida Retirement System Contributions Clearing Trust Fund
4149	from employees and employers contributing to the component plans
4150	of the Florida Retirement System.
4151	Section 22.  Section 121.571, Florida Statutes, is amended
4152	to read:
4153	121.571  Contributions.-Contributions to the investment
4154	plan Public Employee Optional Retirement Program shall be made
4155	as follows:
4156	(1)  CONTRIBUTORY NONCONTRIBUTORY PLAN.-Each member and
4157	employer shall submit accomplish the contributions as required
4158	by s. 121.71 by a procedure in which no employee's gross salary
4159	shall be reduced.
4160	(2)  CONTRIBUTION RATES GENERALLY.-Contributions to fund
4161	the retirement and disability benefits provided under this part
4162	must shall be based on the uniform contribution rates
4163	established by s. 121.71 and on the membership class or subclass
4164	of the member participant. Such contributions must shall be
4165	allocated as provided in ss. 121.72 and 121.73.
4166	(3)  CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR
4167	RETIREE HEALTH INSURANCE SUBSIDY.-Contributions required under
4168	s. 121.71 are this section shall be in addition to employer and
4169	member contributions required for social security and the
4170	Retiree Health Insurance Subsidy Trust Fund as required under
4171	provided in ss. 112.363, 121.052, 121.055, and 121.071, as
4172	appropriate.
4173	Section 23.  Section 121.591, Florida Statutes, is amended
4174	to read:
4175	121.591  Payment of benefits payable under the Public
4176	Employee Optional Retirement Program of the Florida Retirement
4177	System.-Benefits may not be paid under the Florida Retirement
4178	System Investment Plan this section unless the member has
4179	terminated employment as provided in s. 121.021(39)(a) or is
4180	deceased and a proper application has been filed as in the
4181	manner prescribed by the state board or the department. Benefits
4182	are not payable under the investment plan before termination of
4183	employment as provided in s. 121.021(39)(a) for employee
4184	hardships, unforeseeable emergencies, loans, medical expenses,
4185	educational expenses, purchase of a principal residence,
4186	payments necessary to prevent eviction or foreclosure on an
4187	employee's principal residence, or any other reason prior to
4188	termination from all employment relationships with participating
4189	employers. The state board or department, as appropriate, may
4190	cancel an application for retirement benefits if when the member
4191	or beneficiary fails to timely provide the information and
4192	documents required by this chapter and the rules of the state
4193	board and department. In accordance with their respective
4194	responsibilities as provided herein, the state board of
4195	Administration and the department of Management Services shall
4196	adopt rules establishing procedures for application for
4197	retirement benefits and for the cancellation of such application
4198	if when the required information or documents are not received.
4199	The state board of Administration and the department of
4200	Management Services, as appropriate, are authorized to cash out
4201	a de minimis account of a member participant who has been
4202	terminated from Florida Retirement System covered employment for
4203	a minimum of 6 calendar months. A de minimis account is an
4204	account containing member and employer contributions and
4205	accumulated earnings of not more than $5,000 made under the
4206	provisions of this chapter. Such cash-out must either be a
4207	complete lump-sum liquidation of the account balance, subject to
4208	the provisions of the Internal Revenue Code, or a lump-sum
4209	direct rollover distribution paid directly to the custodian of
4210	an eligible retirement plan, as defined by the Internal Revenue
4211	Code, on behalf of the member participant. Any nonvested
4212	accumulations and associated service credit, including amounts
4213	transferred to the suspense account of the Florida Retirement
4214	System Investment Plan Trust Fund authorized under s.
4215	121.4501(6), shall be forfeited upon payment of any vested
4216	benefit to a member or beneficiary, except for de minimis
4217	distributions or minimum required distributions as provided
4218	under this section. If any financial instrument issued for the
4219	payment of retirement benefits under this section is not
4220	presented for payment within 180 days after the last day of the
4221	month in which it was originally issued, the third-party
4222	administrator or other duly authorized agent of the state board
4223	of Administration shall cancel the instrument and credit the
4224	amount of the instrument to the suspense account of the Florida
4225	Retirement System Investment Plan Public Employee Optional
4226	Retirement Program Trust Fund authorized under s. 121.4501(6).
4227	Any such amounts transferred to the suspense account are payable
4228	upon a proper application, not to include earnings thereon, as
4229	provided in this section, within 10 years after the last day of
4230	the month in which the instrument was originally issued, after
4231	which time such amounts and any earnings attributable to
4232	employer contributions thereon shall be forfeited. Any such
4233	forfeited amounts are assets of the Florida Retirement System
4234	Investment Plan Public Employee Optional Retirement Program
4235	Trust Fund and are not subject to the provisions of chapter 717.
4236	(1)  NORMAL BENEFITS.-Under the investment plan Public
4237	Employee Optional Retirement Program:
4238	(a)  Benefits in the form of vested accumulations as
4239	described in s. 121.4501(6) are payable under this subsection in
4240	accordance with the following terms and conditions:
4241	1.  To the extent vested, Benefits are payable only to a
4242	member, an alternate payee of a qualified domestic relations
4243	order, or a beneficiary participant.
4244	2.  Benefits shall be paid by the third-party administrator
4245	or designated approved providers in accordance with the law, the
4246	contracts, and any applicable board rule or policy.
4247	3.  To receive benefits, The member participant must be
4248	terminated from all employment with all Florida Retirement
4249	System employers, as provided in s. 121.021(39).
4250	4.  Benefit payments may not be made until the member
4251	participant has been terminated for 3 calendar months, except
4252	that the state board may authorize by rule for the distribution
4253	of up to 10 percent of the member's participant's account after
4254	being terminated for 1 calendar month if the member participant
4255	has reached the normal retirement date as defined in s. 121.021
4256	of the defined benefit plan.
4257	5.  If a member or former member of the Florida Retirement
4258	System receives an invalid distribution from the Public Employee
4259	Optional Retirement Program Trust Fund, such person must either
4260	repay the full amount invalid distribution to the trust fund
4261	within 90 days after receipt of final notification by the state
4262	board or the third-party administrator that the distribution was
4263	invalid, or, in lieu of repayment, the member must terminate
4264	employment from all participating employers. If such person
4265	fails to repay the full invalid distribution within 90 days
4266	after receipt of final notification, the person may be deemed
4267	retired from the investment plan optional retirement program by
4268	the state board, as provided pursuant to s. 121.4501(2)(k), and
4269	is subject to s. 121.122. If such person is deemed retired by
4270	the state board, any joint and several liability set out in s.
4271	121.091(9)(d)2. is becomes null and void, and the state board,
4272	the department, or the employing agency is not liable for gains
4273	on payroll contributions that have not been deposited to the
4274	person's account in the investment plan retirement program,
4275	pending resolution of the invalid distribution. The member or
4276	former member who has been deemed retired or who has been
4277	determined by the state board to have taken an invalid
4278	distribution may appeal the agency decision through the
4279	complaint process as provided under s. 121.4501(9)(g)3. As used
4280	in this subparagraph, the term "invalid distribution" means any
4281	distribution from an account in the investment plan optional
4282	retirement program which is taken in violation of this section,
4283	s. 121.091(9), or s. 121.4501.
4284	(b)  If a member participant elects to receive his or her
4285	benefits upon termination of employment as defined in s.
4286	121.021, the member participant must submit a written
4287	application or an application by electronic means to the third-
4288	party administrator indicating his or her preferred distribution
4289	date and selecting an authorized method of distribution as
4290	provided in paragraph (c). The member participant may defer
4291	receipt of benefits until he or she chooses to make such
4292	application, subject to federal requirements.
4293	(c)  Upon receipt by the third-party administrator of a
4294	properly executed application for distribution of benefits, the
4295	total accumulated benefit is shall be payable to the member pro
4296	rata across all Florida Retirement System benefit sources
4297	participant, as:
4298	1.  A lump-sum or partial distribution to the member
4299	participant;
4300	2.  A lump-sum direct rollover distribution whereby all
4301	accrued benefits, plus interest and investment earnings, are
4302	paid from the member's participant's account directly to the
4303	custodian of an eligible retirement plan, as defined in s.
4304	402(c)(8)(B) of the Internal Revenue Code, on behalf of the
4305	member participant; or
4306	3.  Periodic distributions, as authorized by the state
4307	board.
4308	(d)  The distribution payment method selected by the member
4309	or beneficiary, and the retirement of the member or beneficiary,
4310	shall be final and irrevocable at the time a benefit
4311	distribution payment is cashed, deposited, or transferred to
4312	another financial institution. Any additional service that
4313	remains unclaimed at retirement may not be claimed or purchased,
4314	and the type of retirement may not be changed, except that if a
4315	member recovers from a disability, the member may subsequently
4316	request benefits under subsection (2).
4317	(e)  A member may not receive a distribution of employee
4318	contributions if a pending qualified domestic relations order is
4319	filed against the member's investment plan account.
4320	(2)  DISABILITY RETIREMENT BENEFITS.-Benefits provided
4321	under this subsection are payable in lieu of the benefits that
4322	which would otherwise be payable under the provisions of
4323	subsection (1). Such benefits must shall be funded entirely from
4324	employer contributions made under s. 121.571, transferred
4325	employee contributions and participant funds accumulated
4326	pursuant to paragraph (a), and interest and earnings thereon.
4327	Pursuant thereto:
4328	(a)  Transfer of funds.-To qualify to receive monthly
4329	disability benefits under this subsection:
4330	1.  All moneys accumulated in the member's participant's
4331	Public Employee Optional Retirement Program accounts, including
4332	vested and nonvested accumulations as described in s.
4333	121.4501(6), must shall be transferred from such individual
4334	accounts to the division of Retirement for deposit in the
4335	disability account of the Florida Retirement System Trust Fund.
4336	Such moneys must shall be separately accounted for separately.
4337	Earnings must shall be credited on an annual basis for amounts
4338	held in the disability accounts of the Florida Retirement System
4339	Trust Fund based on actual earnings of the Florida Retirement
4340	System trust fund.
4341	2.  If the member participant has retained retirement
4342	credit he or she had earned under the pension plan defined
4343	benefit program of the Florida Retirement System as provided in
4344	s. 121.4501(3)(b), a sum representing the actuarial present
4345	value of such credit within the Florida Retirement System Trust
4346	Fund shall be reassigned by the division of Retirement from the
4347	pension plan defined benefit program to the disability program
4348	as implemented under this subsection and shall be deposited in
4349	the disability account of the Florida Retirement System trust
4350	fund. Such moneys must shall be separately accounted for
4351	separately.
4352	(b)  Disability retirement; entitlement.-
4353	1.  A member participant of the investment plan Public
4354	Employee Optional Retirement Program who becomes totally and
4355	permanently disabled, as defined in paragraph (d) s.
4356	121.091(4)(b), after completing 8 years of creditable service,
4357	or a member participant who becomes totally and permanently
4358	disabled in the line of duty regardless of his or her length of
4359	service, is shall be entitled to a monthly disability benefit as
4360	provided herein.
4361	2.  In order for service to apply toward the 8 years of
4362	creditable service required to vest for regular disability
4363	benefits, or toward the creditable service used in calculating a
4364	service-based benefit as provided for under paragraph (g), the
4365	service must be creditable service as described below:
4366	a.  The member's participant's period of service under the
4367	investment plan shall Public Employee Optional Retirement
4368	Program will be considered creditable service, except as
4369	provided in subparagraph d.
4370	b.  If the member participant has elected to retain credit
4371	for his or her service under the pension plan defined benefit
4372	program of the Florida Retirement System as provided under s.
4373	121.4501(3)(b), all such service shall will be considered
4374	creditable service.
4375	c.  If the member elects participant has elected to
4376	transfer to his or her member participant accounts a sum
4377	representing the present value of his or her retirement credit
4378	under the pension plan defined benefit program as provided under
4379	s. 121.4501(3)(c), the period of service under the pension plan
4380	defined benefit program represented in the present value amounts
4381	transferred shall will be considered creditable service for
4382	purposes of vesting for disability benefits, except as provided
4383	in subparagraph d.
4384	d.  Whenever a member participant has terminated employment
4385	and has taken distribution of his or her funds as provided in
4386	subsection (1), all creditable service represented by such
4387	distributed funds is forfeited for purposes of this subsection.
4388	(c)  Disability retirement effective date.-The effective
4389	retirement date for a member participant who applies and is
4390	approved for disability retirement shall be established as
4391	provided under s. 121.091(4)(a)2. and 3.
4392	(d)  Total and permanent disability.-A member participant
4393	shall be considered totally and permanently disabled if, in the
4394	opinion of the division, he or she is prevented, by reason of a
4395	medically determinable physical or mental impairment, from
4396	rendering useful and efficient service as an officer or
4397	employee.
4398	(e)  Proof of disability.-The division, Before approving
4399	payment of any disability retirement benefit, the division shall
4400	require proof that the member participant is totally and
4401	permanently disabled in the same manner as provided for members
4402	of the defined benefit program of the Florida Retirement System
4403	under s. 121.091(4)(c).
4404	(f)  Disability retirement benefit.-Upon the disability
4405	retirement of a member participant under this subsection, the
4406	member participant shall receive a monthly benefit that begins
4407	accruing shall begin to accrue on the first day of the month of
4408	disability retirement, as approved by the division, and is shall
4409	be payable on the last day of that month and each month
4410	thereafter during his or her lifetime and continued disability.
4411	All disability benefits must payable to such member shall be
4412	paid out of the disability account of the Florida Retirement
4413	System Trust Fund established under this subsection.
4414	(g)  Computation of disability retirement benefit.-The
4415	amount of each monthly payment must shall be calculated in the
4416	same manner as provided for members of the defined benefit
4417	program of the Florida Retirement System under s. 121.091(4)(f).
4418	For such purpose, Creditable service under both the pension plan
4419	defined benefit program and the investment plan Public Employee
4420	Optional Retirement Program of the Florida Retirement System
4421	shall be applicable as provided under paragraph (b).
4422	(h)  Reapplication.-A member participant whose initial
4423	application for disability retirement is has been denied may
4424	reapply for disability benefits in the same manner, and under
4425	the same conditions, as provided for members of the defined
4426	benefit program of the Florida Retirement System under s.
4427	121.091(4)(g).
4428	(i)  Membership.-Upon approval of a member's an application
4429	for disability benefits under this subsection, the member
4430	applicant shall be transferred to the pension plan defined
4431	benefit program of the Florida Retirement System, effective upon
4432	his or her disability retirement effective date.
4433	(j)  Option to cancel.-A member Any participant whose
4434	application for disability benefits is approved may cancel the
4435	his or her application if for disability benefits, provided that
4436	the cancellation request is received by the division before a
4437	disability retirement warrant has been deposited, cashed, or
4438	received by direct deposit. Upon such cancellation:
4439	1.  The member's participant's transfer to the pension plan
4440	defined benefit program under paragraph (i) shall be nullified;
4441	2.  The member participant shall be retroactively
4442	reinstated in the investment plan Public Employee Optional
4443	Retirement Program without hiatus;
4444	3.  All funds transferred to the Florida Retirement System
4445	Trust Fund under paragraph (a) must shall be returned to the
4446	member participant accounts from which the such funds were
4447	drawn; and
4448	4.  The member participant may elect to receive the benefit
4449	payable under the provisions of subsection (1) in lieu of
4450	disability benefits as provided under this subsection.
4451	(k)  Recovery from disability.-
4452	1.  The division may require periodic reexaminations at the
4453	expense of the disability program account of the Florida
4454	Retirement System Trust Fund. Except as otherwise provided in
4455	subparagraph 2., the requirements, procedures, and restrictions
4456	relating to the conduct and review of such reexaminations,
4457	discontinuation or termination of benefits, reentry into
4458	employment, disability retirement after reentry into covered
4459	employment, and all other matters relating to recovery from
4460	disability shall be the same as provided are set forth under s.
4461	121.091(4)(h).
4462	2.  Upon recovery from disability, the any recipient of
4463	disability retirement benefits under this subsection shall be a
4464	compulsory member of the investment plan Public Employee
4465	Optional Retirement Program of the Florida Retirement System.
4466	The net difference between the recipient's original account
4467	balance transferred to the Florida Retirement System Trust Fund,
4468	including earnings, under paragraph (a) and total disability
4469	benefits paid to such recipient, if any, shall be determined as
4470	provided in sub-subparagraph a.
4471	a.  An amount equal to the total benefits paid shall be
4472	subtracted from that portion of the transferred account balance
4473	consisting of vested accumulations as described under s.
4474	121.4501(6), if any, and an amount equal to the remainder of
4475	benefit amounts paid, if any, shall then be subtracted from any
4476	remaining portion consisting of nonvested accumulations as
4477	described under s. 121.4501(6).
4478	b.  Amounts subtracted under sub-subparagraph a. must shall
4479	be retained within the disability account of the Florida
4480	Retirement System Trust Fund. Any remaining account balance
4481	shall be transferred to the third-party administrator for
4482	disposition as provided under sub-subparagraph c. or sub-
4483	subparagraph d., as appropriate.
4484	c.  If the recipient returns to covered employment,
4485	transferred amounts must shall be deposited in individual
4486	accounts under the investment plan Public Employee Optional
4487	Retirement Program, as directed by the member participant.
4488	Vested and nonvested amounts shall be separately accounted for
4489	as provided in s. 121.4501(6).
4490	d.  If the recipient fails to return to covered employment
4491	upon recovery from disability:
4492	(I)  Any remaining vested amount must shall be deposited in
4493	individual accounts under the investment plan Public Employee
4494	Optional Retirement Program, as directed by the member
4495	participant, and is shall be payable as provided in subsection
4496	(1).
4497	(II)  Any remaining nonvested amount must shall be held in
4498	a suspense account and is shall be forfeitable after 5 years as
4499	provided in s. 121.4501(6).
4500	3.  If present value was reassigned from the pension plan
4501	defined benefit program to the disability program of the Florida
4502	Retirement System as provided under subparagraph (a)2., the full
4503	present value amount must shall be returned to the defined
4504	benefit account within the Florida Retirement System Trust Fund
4505	and the member's affected individual's associated retirement
4506	credit under the pension plan must defined benefit program shall
4507	be reinstated in full. Any benefit based upon such credit must
4508	shall be calculated as provided in s. 121.091(4)(h)1.
4509	(l)  Nonadmissible causes of disability.-A member is
4510	participant shall not be entitled to receive a disability
4511	retirement benefit if the disability results from any injury or
4512	disease sustained or inflicted as described in s. 121.091(4)(i).
4513	(m)  Disability retirement of justice or judge by order of
4514	Supreme Court.-
4515	1.a.  If a member participant is a justice of the Supreme
4516	Court, judge of a district court of appeal, circuit judge, or
4517	judge of a county court who has served for 6 years or more as an
4518	elected constitutional judicial officer, including service as a
4519	judicial officer in any court abolished pursuant to Art. V of
4520	the State Constitution, and who is retired for disability by
4521	order of the Supreme Court upon recommendation of the Judicial
4522	Qualifications Commission pursuant to s. 12, the provisions of
4523	Art. V of the State Constitution, the member's participant's
4524	Option 1 monthly disability benefit amount as provided in s.
4525	121.091(6)(a)1. shall be two-thirds of his or her monthly
4526	compensation as of the member's participant's disability
4527	retirement date. The member Such a participant may alternatively
4528	elect to receive an actuarially adjusted disability retirement
4529	benefit under any other option as provided in s. 121.091(6)(a),
4530	or to receive the normal benefit payable under the Public
4531	Employee Optional Retirement Program as set forth in subsection
4532	(1). This sub-subparagraph applies to any member retiring prior
4533	to July 1, 2011.
4534	b.  Effective July 1, 2011, and applicable to any member
4535	retiring on or after July 1, 2011, if a member is a justice of
4536	the Supreme Court, judge of a district court of appeal, circuit
4537	judge, or judge of a county court who has served for 6 years or
4538	more as an elected constitutional judicial officer, including
4539	service as a judicial officer in any court abolished pursuant to
4540	Art. V of the State Constitution, and who is retired for
4541	disability pursuant to s. 12, Art. V of the State Constitution,
4542	the member's Option 1 monthly disability benefit amount as
4543	provided in s. 121.091(6)(a)1. shall be one-third of his or her
4544	monthly compensation as of the member's disability retirement
4545	date. The member may alternatively elect to receive an
4546	actuarially adjusted disability retirement benefit under any
4547	other option as provided in s. 121.091(6)(a), or to receive the
4548	normal benefit payable under subsection (1).
4549	2.  If any justice or judge who is a member participant of
4550	the investment plan Public Employee Optional Retirement Program
4551	of the Florida Retirement System is retired for disability by
4552	order of the Supreme Court upon recommendation of the Judicial
4553	Qualifications Commission pursuant to s. 12, the provisions of
4554	Art. V of the State Constitution and elects to receive a monthly
4555	disability benefit under the provisions of this paragraph:
4556	a.  Any present value amount that was transferred to his or
4557	her investment plan program account and all employee and
4558	employer contributions made to such account on his or her
4559	behalf, plus interest and earnings thereon, must shall be
4560	transferred to and deposited in the disability account of the
4561	Florida Retirement System Trust Fund; and
4562	b.  The monthly disability benefits payable under this
4563	paragraph for any affected justice or judge retired from the
4564	Florida Retirement System pursuant to Art. V of the State
4565	Constitution shall be paid from the disability account of the
4566	Florida Retirement System Trust Fund.
4567	(n)  Death of retiree or beneficiary.-Upon the death of a
4568	disabled retiree or beneficiary of the retiree thereof who is
4569	receiving monthly disability benefits under this subsection, the
4570	monthly benefits shall be paid through the last day of the month
4571	of death and shall terminate, or be adjusted, if applicable, as
4572	of that date in accordance with the optional form of benefit
4573	selected at the time of retirement. The department of Management
4574	Services may adopt rules necessary to administer this paragraph.
4575	(3)  DEATH BENEFITS.-Under the investment plan Public
4576	Employee Optional Retirement Program:
4577	(a)  Survivor benefits are shall be payable in accordance
4578	with the following terms and conditions:
4579	1.  To the extent vested, benefits are shall be payable
4580	only to a member's participant's beneficiary or beneficiaries as
4581	designated by the member participant as provided in s.
4582	121.4501(20).
4583	2.  Benefits shall be paid by the third-party administrator
4584	or designated approved providers in accordance with the law, the
4585	contracts, and any applicable state board rule or policy.
4586	3.  To receive benefits under this subsection, the member
4587	participant must be deceased.
4588	(b)  In the event of a member's participant's death, all
4589	vested accumulations as described in s. 121.4501(6), less
4590	withholding taxes remitted to the Internal Revenue Service,
4591	shall be distributed, as provided in paragraph (c) or as
4592	described in s. 121.4501(20), as if the member participant
4593	retired on the date of death. No other death benefits are shall
4594	be available for survivors of members participants under the
4595	Public Employee Optional Retirement Program, except for such
4596	benefits, or coverage for such benefits, as are otherwise
4597	provided by law or are separately provided afforded by the
4598	employer, at the employer's discretion.
4599	(c)  Upon receipt by the third-party administrator of a
4600	properly executed application for distribution of benefits, the
4601	total accumulated benefit is shall be payable by the third-party
4602	administrator to the member's participant's surviving
4603	beneficiary or beneficiaries, as:
4604	1.  A lump-sum distribution payable to the beneficiary or
4605	beneficiaries, or to the deceased member's participant's estate;
4606	2.  An eligible rollover distribution, if permitted, on
4607	behalf of the surviving spouse of a deceased member participant,
4608	whereby all accrued benefits, plus interest and investment
4609	earnings, are paid from the deceased member's participant's
4610	account directly to the custodian of an eligible retirement
4611	plan, as described in s. 402(c)(8)(B) of the Internal Revenue
4612	Code, on behalf of the surviving spouse; or
4613	3.  A partial lump-sum payment whereby a portion of the
4614	accrued benefit is paid to the deceased member's participant's
4615	surviving spouse or other designated beneficiaries, less
4616	withholding taxes remitted to the Internal Revenue Service, and
4617	the remaining amount is transferred directly to the custodian of
4618	an eligible retirement plan, if permitted, as described in s.
4619	402(c)(8)(B) of the Internal Revenue Code, on behalf of the
4620	surviving spouse. The proportions must be specified by the
4621	member participant or the surviving beneficiary.
4622
4623	This paragraph does not abrogate other applicable provisions of
4624	state or federal law providing for payment of death benefits.
4625	(4)  LIMITATION ON LEGAL PROCESS.-The benefits payable to
4626	any person under the investment plan Public Employee Optional
4627	Retirement Program, and any contributions accumulated under the
4628	investment plan such program, are not subject to assignment,
4629	execution, attachment, or any legal process, except for
4630	qualified domestic relations orders by a court of competent
4631	jurisdiction, income deduction orders as provided in s. 61.1301,
4632	and federal income tax levies.
4633	Section 24.  Section 121.5911, Florida Statutes, is amended
4634	to read:
4635	121.5911  Disability retirement program; qualified status;
4636	rulemaking authority.-It is the intent of the Legislature that
4637	the disability retirement program for members participants of
4638	the investment plan Public Employee Optional Retirement Program
4639	as created in this act must meet all applicable requirements of
4640	federal law for a qualified plan. The department of Management
4641	Services shall seek a private letter ruling from the Internal
4642	Revenue Service on the disability retirement program for
4643	participants of the Public Employee Optional Retirement Program.
4644	Consistent with the private letter ruling, the department of
4645	Management Services shall adopt any necessary rules necessary
4646	required to maintain the qualified status of the disability
4647	retirement program and the Florida Retirement System pension
4648	defined benefit plan.
4649	Section 25.  Section 121.70, Florida Statutes, is amended
4650	to read:
4651	121.70  Legislative purpose and intent.-
4652	(1)  This part provides for a uniform system for funding
4653	benefits provided under the Florida Retirement System Pension
4654	Plan defined benefit program established under part I of this
4655	chapter (referred to in this part as the pension plan defined
4656	benefit program) and under the Florida Retirement System
4657	Investment Plan Public Employee Optional Retirement Program
4658	established under part II of this chapter (referred to in this
4659	part as the investment plan optional retirement program). The
4660	Legislature recognizes and declares that the Florida Retirement
4661	System is a single retirement system, consisting of two
4662	retirement plans and other nonintegrated programs. Employees and
4663	employers participating in the Florida Retirement System
4664	collectively shall be responsible for making contributions to
4665	support the benefits provided afforded under both plans. The
4666	employees and As provided in this part, employers participating
4667	in the Florida Retirement System shall make contributions based
4668	upon uniform contribution rates determined as a percentage of
4669	the employee's gross monthly compensation total payroll for the
4670	employee's each class or subclass of Florida Retirement System
4671	membership, irrespective of the which retirement plan in which
4672	the individual employee is enrolled employees may elect. This
4673	shall be known as a uniform or blended contribution rate system.
4674	(2)  In establishing a uniform contribution rate system, it
4675	is the intent of the Legislature to:
4676	(a)  Provide greater stability and certainty in financial
4677	planning and budgeting for Florida Retirement System employers
4678	by eliminating the fiscal instability that would be caused by
4679	dual rates coupled with employee-selected plan participation;
4680	(b)  Provide greater fiscal equity and uniformity for
4681	system employers by effectively distributing the financial
4682	burden and benefit of short-term system deficits and surpluses,
4683	respectively, in proportion to total system payroll; and
4684	(c)  Allow employees to make their retirement plan
4685	selection decisions free of circumstances that may cause
4686	employers to favor one plan choice over another.
4687	Section 26.  Section 121.71, Florida Statutes, is amended
4688	to read:
4689	121.71  Uniform rates; process; calculations; levy.-
4690	(1)  In conducting the system actuarial study required
4691	under s. 121.031, the actuary shall follow all requirements
4692	specified thereunder to determine, by Florida Retirement System
4693	employee membership class, the dollar contribution amounts
4694	necessary for the next forthcoming fiscal year for the pension
4695	plan defined benefit program. In addition, the actuary shall
4696	determine, by Florida Retirement System membership class, based
4697	on an estimate for the next forthcoming fiscal year of the gross
4698	compensation of employees participating in the investment plan
4699	optional retirement program, the dollar contribution amounts
4700	necessary to make the allocations required under ss. 121.72 and
4701	121.73. For each employee membership class and subclass, the
4702	actuarial study must shall establish a uniform rate necessary to
4703	fund the benefit obligations under both Florida Retirement
4704	System retirement plans by dividing the sum of total dollars
4705	required by the estimated gross compensation of members in both
4706	plans.
4707	(2)  Based on the uniform rates set forth in subsections
4708	subsection (3), (4), and (5), employees and employers shall make
4709	monthly contributions to the Division of Retirement as required
4710	in s. 121.061(1), which shall initially deposit the funds into
4711	the Florida Retirement System Contributions Clearing Trust Fund.
4712	A change in a contribution rate is effective the first day of
4713	the month for which a full month's employee and employer
4714	contribution may be made on or after the beginning date of the
4715	change. Beginning July 1, 2011, each employee shall contribute
4716	the contributions required in subsection (3). The employer shall
4717	deduct the contribution from the employee's monthly salary, and
4718	the contribution shall be submitted to the Division of
4719	Retirement. These contributions shall be reported as employer-
4720	paid employee contributions, and shall be credited to the
4721	account of the employee. The contributions shall be deducted
4722	from the employee's salary before the computation of applicable
4723	federal taxes and shall be treated as employer contributions
4724	under 26 U.S.C. s. 414(h)(2). The contributions, although
4725	designated as employee contributions, are being paid by the
4726	employers in lieu of contributions by the employee. The employee
4727	shall not have the option of choosing to receive the contributed
4728	amounts directly instead of having them paid by the employer to
4729	the plan. Such contributions are mandatory and each employee
4730	shall be considered to consent to payroll deductions. Payment of
4731	an employee's salary or wages, less the contribution, is a full
4732	and complete discharge and satisfaction of all claims and
4733	demands for the service rendered by employees during the period
4734	covered by the payment, except their claims to the benefits to
4735	which they may be entitled under the provisions of this chapter.
4736	(3)  Required employee retirement contribution rates for
4737	each membership class of the Florida Retirement System for both
4738	retirement plans are as follows:
	Membership Class Percentage of Gross Compensation,Effective July 1, 2011
4739
	Regular Class 5.00%
4740
	Special Risk Class 5.00%
4741
	Special Risk Administrative Support Class 5.00%
4742
	Elected Officers' Class 5.00%
4743
	Senior Management Class 5.00%
4744
	DROP 0.00%
4745
4746	(4)(3)  Required employer retirement contribution rates for
4747	each membership class and subclass of the Florida Retirement
4748	System for both retirement plans are as follows:
4749
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
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	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
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	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
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	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
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	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
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	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
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	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
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	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
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	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
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	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
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	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
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	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2011 2009
	Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2010
4750	act, this act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.